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.

Question

Quizplus · Accepted Answer

Relevant accounting information is information that is capable of making a difference in a decision. While the other options (A, C, and D) are important characteristics of accounting information, they do not relate specifically to the concept of relevance.

Accounting Information Is Considered to Be Relevant When It