Question

The primary qualities that make accounting information useful for decision making are_________.

• A. Relevance and freedom from bias
• B. Reliability and Relevance
• C. Comparability and consistency
• D. None of these

Answer 1

The correct option is B Reliability and Relevance

The primary qualities that make accounting information useful for decision making are reliability and comparability. Reliability means that the statement of accounts/accounting information is reliable for the users of the financial statements.

Comparability means that the accounting information should be presented in such a way that it is comparable and it facilitates inter and intra-firm comparison.