Does the criterion of understandability mean that every person should be able to understand the financial statements?

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Does the criterion of understandability mean that every person should be able to understand the financial statements? Discuss.

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Intermediate Accounting

ISBN: 978-0071339476

Volume 1, 6th Edition

Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I

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Question Posted: Aug 20, 2015 02:28 AM

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Does the criterion of understandability mean that every person should be able to understand the financial statements?

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Yes understandability is the idea which states that the financial informatio...View the full answer

Intermediate Accounting

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