The Requirement That Financial Report Information Is Comprehensible to Users

question 22

Multiple Choice

The requirement that financial report information is comprehensible to users who have a reasonable knowledge of business and accounting is known as:

• A)understandability
• B)relevance
• C)materiality
• D)reliability

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Definitions:

Orderliness

A personality trait characterized by a desire for neatness, predictability, and organization in one's environment and activities.

Violence

The intentional use of physical force or power, threatened or actual, that either results in or has a high likelihood of resulting in injury, death, psychological harm, maldevelopment, or deprivation.

Sexuality

A complex integration of biological, emotional, social, and psychological factors that influence an individual's sexual feelings, thoughts, and behaviors.

Cleaning Compulsion

An obsessive need to clean or perform cleaning rituals, often related to obsessive-compulsive disorder (OCD).