STEP-BY-STEP ANSWER:
Step 1: Understand that nucleic acids are polymers of nucleotides, each containing a sugar, a phosphate group, and a base.
Step 2: The sequence of nucleotide bases (adenine, thymine/uracil, cytosine, and guanine) forms a code that specifies genetic information.
Step 3: In DNA, the double helix structure allows complementary base pairing, facilitating replication and transcription.
Step 4: RNA transcribes and translates this genetic information into proteins.
Final Answer: Nucleic acids encode genetic information in the sequence of nucleotide bases, which is transmitted through replication and translated into proteins.