FASB board members make standard-setting decisions guided by a conceptual framework that addresses the qualitative characteristics of accounting information. Which of the qualitative characteristics of accounting information holds that the information should be pertinent to the decisions made by users of financial statements, in the sense of having the capacity to affect their resource allocation decisions?
A)Relevance
B)Reliability
C)Comparability.
D)Subjective
E)all of the above

Question

Quizplus · Accepted Answer

The qualitative characteristic of relevance holds that accounting information should be pertinent to the decisions made by users of financial statements, in the sense of having the capacity to affect their resource allocation decisions. Reliability pertains to information that is free of material error or bias, while comparability relates to the ability to compare financial information across different periods and companies. Subjectivity is not a qualitative characteristic of accounting information.

FASB Board Members Make Standard-Setting Decisions Guided by a Conceptual