Which of the following statements is FALSE?
A) Financial accounting information only serves a purpose if it is useful for decision making.
B) Information quality is the suitability of information for a particular purpose in a specific task.
C) Understandability and timeliness of data has a higher priority than relevance.
D) Relevance of information carries more priority than consistency and verifiability.

Question

Quizplus · Accepted Answer

The statement that understandability and timeliness of data has a higher priority than relevance is false. In financial accounting, relevance is considered a fundamental qualitative characteristic that makes financial information useful for decision making. While understandability and timeliness are important, they do not override the necessity for information to be relevant.

Which of the Following Statements Is FALSE