Relevance - needs to analyze each financial transaction so...

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DE’SHUN MOSS CONDELL ACCOUNTING THEORY 315 ASSIGNMENT 2-8 Relevance Relevance is a qualitative characteristic in accounting. Relevance is associated with information that is timely, useful, has predictive value, and is going to make a difference to a decision maker. The purpose of making financial statements relevant is to provide financial information that the user can work with to make financial decisions. The appraised value of the equipment is the most relevant number. It represents the future- predictive value , Reliability Reliability refers to the accuracy with which the financial data is reported. The company
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Unformatted text preview: needs to analyze each financial transaction so that the transaction is recorded accurately in the financial records. Financial statement users want to know that information reported is accurate and can be trusted. The purpose of making financial statements reliable is to provide accurate financial information for the user to use when making financial decisions. The $ 42,000 is reliable because it is the selling price of the machine and it is the most accurate....
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This note was uploaded on 02/02/2012 for the course ACCOUNTING Acc632 taught by Professor Marry during the Spring '10 term at College of the Bahamas.

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