Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 2 - Conceptual Framework for Financial Reporting - Exercises - Page 72: E2-4j

Answer

Relevance and Faithful Representation

Work Step by Step

The concept of relevance calls for the provision of information that can actively influence the decision-making ability of users. On the other hand, faithful representation ensures that the information is credible in representing the stated economic phenomena. These two qualities allow information to be useful during decision making.
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