To understand and use accounting information in making economic decisions, you must understand:
A) The nature of economic activities that accounting information describes.
B) The assumptions and measurement techniques involved in developing accounting information.
C) Which information is relevant for a particular type of decision that is being made.
D) All of the above.

Question

Quizplus · Accepted Answer

To effectively use accounting information in making economic decisions, one must have a comprehensive understanding of the nature of economic activities that are being described, the underlying assumptions and measurement techniques that are used to arrive at accounting information, and which information is relevant and applicable to the specific decision that is being made. Hence, all of the given options are necessary to understand and use accounting information effectively.

To Understand and Use Accounting Information in Making Economic Decisions