Information must be sufficiently transparent so that it makes sense to reasonably informed users of the financial statements,such as creditors.This qualitative characteristic of information is called:
A)verifiability.
B)faithful representative.
C)relevant.
D)understandability.

Question

Quizplus · Accepted Answer

The qualitative characteristic of information that ensures it is understandable to reasonably informed users of financial statements, such as creditors, is called understandability. Transparency is important in financial statements, as it helps users make informed decisions about the financial health of a company. Therefore, the correct answer is D - understandability.

Information Must Be Sufficiently Transparent So That It Makes Sense