Explain the concept of relevance. 0 A. Relevance is a fundamental characteristic
ID: 2331523 • Letter: E
Question
Explain the concept of relevance. 0 A. Relevance is a fundamental characteristic of useful financial information. Relevant information is capable of making a difference in decision making because of its predictive value, confirmatory value and materiality. OB. Relevance is a fundamental characteristic of useful financial information. Relevant information O c. Relevance is secondary to faithful representation. Financial information is relevantifitis 0 D. Relevance is secondary to confirmatory value. Relevant information is capable of making a is capable of making a difference in decision making only by exhibiting materiality. capable of making a difference in decision making by exhibiting confirmatory value. difference in decision making because of its predictive value or materiality.
Explanation / Answer
Relevance is a fundamental characteristic of useful financial information. Relevant information is capable of making a difference in decision making because of its predictive value, confirmatory value and materiality. Option A is correct