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

Accounting information is considered relevant when it has the ability to influence the decision-making process by helping users make predictions about the outcomes of past, present, and future events or confirm or correct prior expectations.

Accounting Information Is Considered to Be Relevant When It