Relevance is an objective of external financial reporting that means: A. the fin
ID: 2328300 • Letter: R
Question
Relevance is an objective of external financial reporting that means:
A. the financial reports of a business are assumed to include the results of only that business's activities.
B. financial information can be compared across businesses because similar accounting methods have been applied.
C. the financial information possesses a feature that allows it to influence a decision.
D. the financial information depicts the economic substance of business activities.
I thought it was A but it was wrong.
Explanation / Answer
Multiple choice :
Relevance is an objective of external financial reporting that means:
So answer is d) the financial information depicts the economic substance of business activities.