Asked by Bruce Eugine on May 09, 2024
Verified
Financial information capable of making a difference in a decision is relevant.
Financial Information
Data related to the financial performance and position of an entity, including income statements, balance sheets, and cash flow statements.
Relevant
Pertains to information or data that can influence decision-making processes because of its applicability and significance to the issue at hand.
- Acknowledge the importance of qualitative characteristics such as relevance and timeliness in financial information.
Verified Answer
MS
Melissa SaffeelsMay 13, 2024
Final Answer :
True
Explanation :
Financial information that has the potential to influence the outcome of a decision is considered relevant. It must be accurate, timely, and trustworthy so that it can be used to make informed decisions. Non-relevant financial information, on the other hand, may be interesting but is not likely to impact the decision-making process.
Learning Objectives
- Acknowledge the importance of qualitative characteristics such as relevance and timeliness in financial information.
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