Question

Confirmatory Value is an ingredient of the primary quality of

Relevance Faithful Representation
a) Yes No
b) No Yes
c) Yes Yes
d) No No

Answer 1

The correct answer is c) Yes Yes, as confirmatory value is an aspect of relevance, and both relevance and faithful representation are important to financial information.

Step-by-step explanation:

The student's question pertains to the characteristics of financial information as it relates to confirmatory value. In the context of accounting and financial reporting, confirmatory value is indeed an important aspect of relevance, providing feedback on past predictions. On the other hand, faithful representation is a separate primary qualitative characteristic that indicates the information accurately reflects the economic phenomena it purports to represent. Therefore, the answer to the student's question is c) Yes Yes, since confirmatory value is a component of relevance, and relevance and faithful representation both contribute to the usefulness of financial information.