Final answer:
Predictive Value is a key component of Relevance in financial reporting, making the correct answer to the question 'Yes Yes' for its association with Relevance. However, it is not a component of Faithful Representation, so the second part of the question should be answered 'No'.
Step-by-step explanation:
The term Predictive Value is associated with accounting and financial reporting. When evaluating the utility of financial information, Predictive Value is a key component under the umbrella of Relevance, which is one of the two primary qualities that make accounting information useful for decision-making, the other being Faithful Representation.
Therefore, the correct answer to the question is Yes for Predictive Value being an ingredient of Relevance. Similarly, Faithful Representation is also an important quality that ensures financial information reflects the economic substance of business transactions without bias or error. Predictive Value is not a direct component of Faithful Representation, so the second part of the question would be answered No. Thus, the correct answer is (c) Yes Yes.