The concept indicating that specific items of accounting information are important is
A) understandability.
B) relevance.
C) reliability.
D) materiality.
E) comparability.

Question

Quizplus · Accepted Answer

Materiality refers to the significance of financial information in influencing the decision-making of users. It determines whether an item is important enough to be included in financial statements.

The Concept Indicating That Specific Items of Accounting Information Are