Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 1 of 4
Accounting information can be useful in decision-making if it possesses high degrees of either relevance or reliability, not necessarily both. True or False?
User Contributed Comments 5
| User | Comment |
|---|---|
| anricus | How can accounting information which is relevant but unreliable or reliable but unrelevant be useful for decision making? I would have to disagree with the statement! Other opinions? |
| maithori | its the reality of a/cing information: that its historical so it may not be relevant for current decisions; but reliable since its accurate. i believe its a balancing effect of two issues. |
| emsharas | yes, but his point is sound - the question regards (future) Decision-Making... it may be reliable, but if it is not relevant it is not useful for decision making. |
| Bibhu | Importance is on high degree. Information can be reliable and relevant. But when one is high other cant be high. Else that become an ideal scenario. The example detailed in study notes. |
| boydag | this question can have an ideal scenario. |
Your review questions and global ranking system were so helpful.
Lina
Learning Outcome Statements
describe general requirements for financial statements under International Financial Reporting Standards (IFRS);
CFA® 2024 Level I Curriculum, Volume 2, Module 17.