Complete with the words that are in the rectangle to fill in the concepts of basic accounting principles.

Relevant - Understandable - Material - Reliable

a) The information must be presented in a way that is understandable for users who have accounting knowledge, but this does not mean that relevant information should be omitted just because it may be difficult to understand.

b) Information is relevant when it can influence the economic decisions of those who use it, helping them to evaluate events and to confirm or correct previous assessments.

c) The information must be reliable and relevant, as an error or omission can influence the economic decisions of those who analyze it.

d) Information is material when it is free of error and bias and faithfully represents the situation of a company.

Question

30-07-2024
Business

Answered

Complete with the words that are in the rectangle to fill in the concepts of basic accounting principles.

Relevant - Understandable - Material - Reliable

a) The information must be presented in a way that is understandable for users who have accounting knowledge, but this does not mean that relevant information should be omitted just because it may be difficult to understand.

b) Information is relevant when it can influence the economic decisions of those who use it, helping them to evaluate events and to confirm or correct previous assessments.

c) The information must be reliable and relevant, as an error or omission can influence the economic decisions of those who analyze it.

d) Information is material when it is free of error and bias and faithfully represents the situation of a company.

Answer :

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GinnyAnswer GinnyAnswer · Answer 1 · 2024-07-30T08:56:16-04:00

Final answer:

Accounting principles emphasize the importance of relevant and useful information for decision-making in financial reporting.

Explanation:

Relevant information in accounting ensures that data presented is important and not omitted because it may be challenging to understand.

Usefulness in accounting means that information provided should influence economic decisions and be reliable and faithful to reflect a company's position accurately.

Deceiving people by omitting relevant information in financial reporting can impact decision-making and is a violation of basic accounting principles.

Learn more about Accounting principles here:

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