Which characteristic of information,when omitted or misstated,could influence economic decisions taken by users on the basis of financial statements?
A) Relevance
B) Reliability
C) Materiality
D) Comparability

Question

Quizplus · Accepted Answer

Materiality is the characteristic of information that determines whether it is important enough to influence the economic decisions of users. If material information is omitted or misstated in financial statements, users may make incorrect decisions based on incomplete or inaccurate information. Relevance, reliability, and comparability are also important characteristics of information, but they may not have as direct an impact on economic decisions as materiality.

Which Characteristic of Information,when Omitted or Misstated,could Influence Economic Decisions