BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the results and financial position of a business are different
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relate to the future and different result among alternatives
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Accumulation of accounting information for a company’s internal users
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Accumulation of accounting information for a company’s external users
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Detailed explanation-1: -Relevant information is data that can be applied to solve a problem. This is a particular issue when determining the format and content of an entity’s financial statements, since the proper layout and level of detail of information can adjust the opinions of users regarding the future direction of a business.
Detailed explanation-2: -In the process of decision-making, a piece of information is said to be relevant if it is expected to be related to the future data that diverges among the various alternatives.
Detailed explanation-3: -Financial information is relevant if it is capable of making a difference in the decisions made by users of that information. Such information can make a difference if it has: predictive value. confirmatory value, or. both.
Detailed explanation-4: -Relevant information allows businesses to make sound decisions about their operations and strategies. By providing up-to-date and accurate information, businesses can better understand their current state, identify opportunities and risks, and make informed decisions about the future of their organization.