Identify the accounting concept or principle that relates to the statement in the following statement: Information should have predictive value and/or feedback value.
A) Relevance
B) Faithful representation
C) Materiality
D) Comparability

Question

Quizplus · Accepted Answer

The accounting concept that relates to the statement is relevance. Relevant information is important for decision-making because it has predictive value (helps users forecast future outcomes) and/or feedback value (confirms or corrects prior expectations).

Identify the Accounting Concept or Principle That Relates to the Statement