Accounting information is considered to be relevant when it
A) can be depended on to represent the economic conditions and events that it is intended to represent
B) is capable of making a difference in a decision
C) is understandable by reasonably informed users of accounting information
D) is verifiable and neutral
E) is free from bias

Question

Quizplus · Accepted Answer

Relevant information must be capable of making a difference in a decision. While the other choices are also important characteristics of accounting information, they are not necessarily indicative of relevance.

Accounting Information Is Considered to Be Relevant When It