Predictive value is an ingredient of which of the two fundamental qualities that make accounting information useful for decision-making purposes?

Question

Business

Skipper

1 September, 20:29

Predictive value is an ingredient of which of the two fundamental qualities that make accounting information useful for decision-making purposes?

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Answers (1)

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Leilani White · Answer 1

The correct answer to the following question will be "Faithful Representation and Relevance".

Explanation:

Relevance is the idea that somehow the data produced by the billing system should affect the judgment-making of somebody who is reading the details. The definition can include the quality and/or completeness of the details, which both may have an impact on decision-making. Faithful accounting or representation is the principle of the creation of financial reports that accurately represent the state of the corporation. For eg, if a company announces from its income statement that it would have $1,200,000 in accounts payable at the end of September, the number should, therefore, have been available on that day.

Therefore, it will be the right answer.