According to Statement of Financial Accounting Concepts No.2, which of the following relates to both relevance and reliability?
A)Materiality
B)Understandability
C)Usefulness
D)All of these

Question

Quizplus · Accepted Answer

Materiality, understandability, and usefulness are all related to both relevance and reliability. Materiality is the concept that information is important enough to influence the economic decisions of users. Understandability is the concept that information is presented in a clear and concise manner so that users can easily understand it. Usefulness is the concept that information is helpful in making economic decisions.