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      Question

      _____ in accounting refers to the quality of financial

      information that can be easily comprehended by its intended users?
      A Reliability Correct Answer Incorrect Answer
      B Understandability Correct Answer Incorrect Answer
      C Materiality Correct Answer Incorrect Answer
      D Comparability Correct Answer Incorrect Answer

      Solution

      Understandability in accounting refers to the quality of financial information that can be easily comprehended by its intended users.

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