Under Statement of Financial Accounting Concepts No.2,which of the following is an ingredient of the primary quality of relevance?
A)Predictive value
B)Materiality
C)Understandability
D)Verifiability

Question

Quizplus · Accepted Answer

According to Statement of Financial Accounting Concepts No.2, predictive value is an ingredient of the primary quality of relevance. Predictive value means that accounting information can assist users in making predictions about future events. Materiality, understandability, and verifiability are also important qualities but are not specifically related to relevance.