• 1 Marks

FA – May 2017 – L1 – SA – Q2 – Qualitative Characteristics of Useful Financial Information

Defines relevant financial information as per the Conceptual Framework.

Relevant financial information, according to the Conceptual Framework is

A. Capable of making a difference in the decisions made by users
B. Incapable of making a difference in the decisions made by users
C. Capable of making a difference in the performance of the company
D. Incapable of making a difference in the performance of the company
E. Capable of multiple interpretations

Answer: A

Explanation: Relevant financial information is defined as information that can influence the decision-making of users by helping them evaluate past, present, or future events or confirming or correcting past evaluations.

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