The Conceptual Framework identifies two aspects to financial information that are 'relevant'.These are:
A)verifiability and understandability.
B)predictability and verifiability.
C)neutrality and verifiability.
D)prudence and neutrality.

Question

Quizplus · Accepted Answer

The two aspects of financial information that are considered relevant according to the Conceptual Framework are predictability and verifiability. Predictability refers to the ability of financial information to assist users in predicting future outcomes. Verifiability, on the other hand, is the ability to ensure that the financial information is reliable and can be independently verified. The other options mentioned in the question, such as understandability, neutrality, and prudence, are also important aspects of financial reporting but are not specifically mentioned as the two relevant aspects in the Conceptual Framework.

The Conceptual Framework Identifies Two Aspects to Financial Information That