Question

For accounting information to be relevant, the information should ______. (Select all that apply.)

Answer 1

Answer:

A and B

Explanation:

The relevance or conformity is the concept that the information generated by the accounting system influences the decision maker to make a decision. The concept may include the content and / or timeliness of information that can influence decision making. In particular, the relevance of the information provided to users is thought to be faster. This impact can be a confirmation of a reader's previous decision (for example, investing in a company) or making a new decision (such as investing in a company). Here are some examples of how communication is used in accounting:

A company auditor decides to expedite the closing of the month so that it can publish its financial statements within three days instead of the old three-week standard. This increases the speed of receiving financial reports from various internal and external parties, and increases the relevance of the information they receive.

The Industrial Engineering Manager is considering installing a new, higher capacity machine in the manufacturing sector. If the sales department publishes a new forecast showing a decline in sales, the engineering manager may not need to buy such a high capacity machine.

One company is considering another company. If the acquired company discloses that it has not been pre-registered and is liable, it is due to the buyer's decision in relation to the purchase price, which the buyer will extend the purchase offer, and is willing to pay.

One company had a strong quarter; These are the decisions to provide creditors with improved results, or to increase or increase the amount of credit granted to the company.