Identify the accounting concept or principle that relates to the statement in the following question: Information should have predictive value and/or feedback value.
A) Relevance
B) Faithful representation
C) Materiality
D) Comparability

Question

Quizplus · Accepted Answer

The accounting concept that relates to the statement "information should have predictive value and/or feedback value" is relevance. Relevance means that the information provided is capable of making a difference in decision-making. Information that has predictive value helps users to make future decisions while information that has feedback value helps users to evaluate past decisions. Therefore, the information should be relevant to the decision-making process.

Identify the Accounting Concept or Principle That Relates to the Statement