Revision

Question 1

Information is relevant if

Answer 1

Makes difference to decisions made by users
1. Predictive of what may happen in the future
2. Confirmatory of what has happened in the past
3. Companies must have policies as to what may or may not be MATERIAL

Question 2

Faithful representation

Answer 2

Must faithfully represent substance of what it represents, and is therefore 1. COMPLETE ( helps understand and includes descriptions and explanations)
2. NEITRAL ( no bias and supported.by exercise of prudence and free from error

Question 3

Enhancing qualitative characteristics

Answer 3

1. Comparability
2. Verifiability
3. Understandability - users have reasonable knowledge
   Timelinrss

Question 4

Enhancing qualitative characteristics

Answer 4

1. Comparability
2. Verifiability
3. Understandability - users have reasonable knowledge
   Timelinrss

Question 5

When it is a business

Answer 5

1. Ther esre inputs
2. There are substantive processes
3. The ability to create output
   Concentration test