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- What is Relevance in Accounting? Relevance is the concept that the information generated by an should impact the decision-making of someone perusing the information. The concept can involve the content of the information and/or its timeliness, both of which can impact decision making.www.accountingtools.com/articles/what-is-relevance-in-accounting.html
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A piece of information is relevant if it provides an actionable insight or can make a difference in the decision-making of the end-user. This relevant information may be useful for business managers and outsiders in accounting.
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No matter how reliable, if information is not relevant to the decision at hand, it is useless. Conversely, relevant information is of little value if it cannot be relied on. Let’s look closer at each of these two characteristics, including the …
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