The two attributes that make financial information relevant are ________ and ________.
A)reliability; faithful representation
B)reliability; verifiability
C)comparability; consistency
D)understandability; timeliness
E)predictive value; confirmatory value

Question

Quizplus · Accepted Answer

Relevant financial information must have two attributes: predictive value and confirmatory value. Predictive value implies that the information is useful for making future decisions, while confirmatory value means that it provides feedback on past decisions. Therefore, choice E, predictive value and confirmatory value, are the correct attributes that make financial information relevant.

The Two Attributes That Make Financial Information Relevant Are ________