Question

Which of the following characteristics of accounting information primarily allows user of financial statements to generate predictions about an organization?

• A. Reliability
• B. Timeliness
• C. Neutrality
• D. Relevance

Answer 1

The correct option is D Relevance

Information is relevant if it is available in time and helps in prediction.
The management needs accounting information for making a useful decision like where to invest, how was the performance of the business the year, where management needs to improve but if management does not get this information on time then they cannot make a certain prediction which is important for the success of the company.