Financial information that is capable of making a difference in a decision is
A) faithfully representative.
B) relevant.
C) convergent.
D) generally accepted.

Question

Quizplus · Accepted Answer

Relevant information is capable of making a difference in a decision as it is information that is directly related to the decision at hand. Faithfully representative information may be accurate, but not necessarily relevant. Convergent information refers to having multiple sources of information confirming the same conclusion, but it does not necessarily make a difference in a decision. Generally accepted information refers to accounting standards and principles, but again, this does not necessarily make a difference in a decision.

Financial Information That Is Capable of Making a Difference in a Decision