Question

A message is said to be effectively communicated if ________________ situation.

• A. message have no error
• B. interpreted by the receiver in the same sense as the senders
• C. both sender & receiver agree with massage
• D. None of the above

Answer 1

The correct option is B interpreted by the receiver in the same sense as the senders

Understandability is the concept that defines that financial information should be presented in such a manner that all the readers of financial information can easily comprehend it.
It assumes that the readers require a reasonable knowledge of business only and there is no need of having any advanced business knowledge for the comprehension. However understandibility does not says that the financial information should leave the complex information behind just because it will be difficult to understand, rather it says that the information should be clear, concise, complete and must be presented in a systematic manner.