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    5. _____ in accounting refers to the quality of financial information that can be easily comprehended b

    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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    • UPSC EO/AO

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