Question

According to the FASB's conceptual framework, the quality of information that helps users increase the likelihood of correctly forecasting the outcome of past or present events is called
A. Representational faithfulness.

B. Comparability.

C. Predictive value.

D. Confirmatory value.

Answer 1

Answer:

C. Predictive value.

Explanation:

Relevant information is able to make a difference in user decisions. To do so, it must have predictive value, confirmatory value, or both. Financial information has predictive value if it can be used as an input in a predictive process.