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Fundamental Qualitative Characteristics of Accounting Information

Explore fundamental qualitative characteristics of accounting information: relevance and faithful representation, crucial for accurate financial insights.

relevance

faithful

representation

understandability

comparability

verifiability

timeliness

neutrality

materiality

completeness

reliability

consistency

prudence

substance

over form

i.e it can be used as an input to predict future outcomes

  • Predictive value

30. Which qualitative characteristic of accounting information ensures that it is presented in a manner that is easily understandable by users?

  • a) Understandability
  • b) Relevance
  • c) Neutrality
  • d) Consistency

63. The characteristic of accounting information that ensures it remains relevant and reliable over time is:

  • a) Consistency
  • b) Timeliness
  • c) Comparability
  • d) Neutrality

38. The qualitative characteristic that allows for valid comparisons between different entities is:

  • a) Consistency
  • b) Comparability
  • c) Faithful Representation
  • d) Relevance

the use of the same methods for the same items, either from period to period within a reporting entity or in a single period across entities

  • consistency

Historical Cost, Revenue Recognition, Expense Recognition (Matching), & Conservatism

  • Principles

60. When accounting information can be verified through inspection and measurement, it adheres to which qualitative characteristic?

  • a) Neutrality
  • b) Verifiability
  • c) Understandability
  • d) Relevance

Company that can raise money easily, transfer ownership easily, and has limited liability, BUT is more complex to organize and has higher taxes

  • Corporation

6. Which qualitative characteristic of accounting information ensures that it is available to users before it loses its capacity to influence decisions?

  • a) Comparability
  • b) Neutrality
  • c) Timeliness
  • d) Faithful Representation

33. The qualitative characteristic that ensures that financial information is available to users before it loses its relevance is:

  • a) Timeliness
  • b) Understandability
  • c) Relevance
  • d) Comparability

14. When accounting information is timely and can influence decisions, it possesses which qualitative characteristic?

  • a) Relevance
  • b) Understandability
  • c) Comparability
  • d) Neutrality

32. What qualitative characteristic of accounting information means that it is free from material error and bias?

  • a) Relevance
  • b) Consistency
  • c) Reliability
  • d) Predictive value

. The main users of financial statements . The purpose of financial statements . The qualities financial information should have The main elements of financial statements and how they should be defined, recognised and measured

  • What does the conceptual framework highlight

34. Which qualitative characteristic of accounting information relates to the absence of favoritism towards any particular group of users?

  • a) Neutrality
  • b) Predictive value
  • c) Comparability
  • d) Reliability

Economic Entity, Continuity (Going Concern), Time Period, & Monetary Unit

  • Assumptions

Net Income / [Net] Sales Revenue

  • Net Profit Margin

Information is available to users before it loses its ability to influence decisions

  • Timeliness

83. The characteristic of accounting information that ensures it remains relevant and reliable over time is:

  • a) Consistency
  • b) Timeliness
  • c) Comparability
  • d) Neutrality

53. The characteristic of accounting information that ensures it remains relevant and reliable over time is:

  • a) Consistency
  • b) Timeliness
  • c) Comparability
  • d) Neutrality

50. When accounting information can be verified through inspection and measurement, it adheres to which qualitative characteristic?

  • a) Neutrality
  • b) Verifiability
  • c) Understandability
  • d) Relevance

5. The qualitative characteristic of accounting information that ensures it is complete, neutral, and free from material error is:

  • a) Timeliness
  • b) Verifiability
  • c) Faithful Representation
  • d) Understandability

information faithfully represents the economic phenomena it purports to represent

  • verifiability

86. When accounting information is stable and consistent over time, it adheres to which qualitative characteristic?

  • a) Neutrality
  • b) Relevance
  • c) Consistency
  • d) Verifiability

Common set of rules and conventions developed to guide the preparation of financial statements, to make them easier to use over time and across companies

  • Generally Accepted Accounting Principles (GAAP)

The financial statements should enable users to compare the performance of the company from one period to another or compare performance or father company with its competitors.Consistency: use of the same methods from the same items, either from period to period or in a single period across entities

  • Comparbility

96. When accounting information is stable and consistent over time, it adheres to which qualitative characteristic?

  • a) Neutrality
  • b) Relevance
  • c) Consistency
  • d) Verifiability

International organization that sets accounting standards

  • International Accounting Standards Board (IASB)

The activities of a company are initially measured at the exchange price at the time the activity occurs

  • Historical Cost

97. What qualitative characteristic of accounting information means that it can be verified by independent parties?

  • a) Understandability
  • b) Verifiability
  • c) Predictive value
  • d) Comparability

64. Which qualitative characteristic of accounting information relates to the absence of favoritism towards any particular group of users?

  • a) Neutrality
  • b) Predictive value
  • c) Comparability
  • d) Reliability

Accountants should take care to avoid overstating assets or income when they prepare financial statements

  • Conservatism

4. Which qualitative characteristic of accounting information relates to the ability to compare financial information from one period to another and with other companies?

  • a) Faithful Representation
  • b) Comparability
  • c) Relevance
  • d) Timeliness

27. Which qualitative characteristic of accounting information ensures that it remains relevant and reliable over time?

  • a) Consistency
  • b) Timeliness
  • c) Understandability
  • d) Comparability

Beginning Retained Earnings+ Net Income- Dividends

  • Retained Earnings Statement

59. Which qualitative characteristic of accounting information ensures that it is free from error and bias?

  • a) Understandability
  • b) Predictive value
  • c) Reliability
  • d) Timeliness

Independent parties can agree on the measurement of the activity

  • Verifiability

Revenue is to be recognized or recorded in the period in which it is earned and the collection of cash is reasonably assured

  • Revenue Recognition

A company must account for and report its financial results in monetary terms

  • Monetary Unit

29. The qualitative characteristic that allows for the making of predictions about the future is:

  • a) Reliability
  • b) Substance over form
  • c) Predictive value
  • d) Comparability

35. The ability of accounting information to faithfully represent the financial position and performance of an entity is associated with which qualitative characteristic?

  • a) Predictive value
  • b) Comparability
  • c) Faithful Representation
  • d) Timeliness

no errors or omissions in the description of the phenomenon, and the process used to produce the reported information has been selected and applied with no errors in the process

  • freedom from error

88. The qualitative characteristic that allows for valid comparisons between different entities is:

  • a) Consistency
  • b) Comparability
  • c) Faithful Representation
  • d) Relevance

The benefit received from accounting info should be greater than the cost of providing that info

  • Cost Constraint

92. What qualitative characteristic of accounting information ensures that it can be easily comprehended by users?

  • a) Understandability
  • b) Relevance
  • c) Consistency
  • d) Verifiability

8. Which characteristic of accounting information indicates that it is a faithful representation of the underlying economic events?

  • a) Understandability
  • b) Comparability
  • c) Verifiability
  • d) Timeliness

Each company is accounted for separately from its owners

  • Economic Entity

16. The qualitative characteristic that ensures information is complete, unbiased, and free from material error is:

  • a) Consistency
  • b) Timeliness
  • c) Comparability
  • d) Reliability

Use similar policies from one financial period to another Where there is a change, explain reason for and effect of the change

  • Consistency

Clarify and expand upon the information presented in the financial statements

  • Notes to the Financial Statements

17. Which qualitative characteristic of accounting information is associated with the ability to present it in a clear and concise manner?

  • a) Predictive value
  • b) Faithful Representation
  • c) Understandability
  • d) Relevance

Relevance & Faithful Representation

  • Fundamental Characteristics

Accounting info must represent what it is meant to representIt is faithfully represented if it is complete, neutral and free from material errorCompleteness - does it include all information necessary for a user to understand what is being reportedNeutrality - if the information biased? financial info must not be weighted, emphasised or manipulated to increase the profitability or faviourability by usersFreedom from error- has the information been processed and reported correctly

  • Faithful representation

72. What qualitative characteristic of accounting information ensures that it can be easily comprehended by users?

  • a) Understandability
  • b) Relevance
  • c) Consistency
  • d) Verifiability

classifying, characterizing, and presenting information clearly and concisely

  • understandability

Company that has tax advantages and access to resources and skills of partners, BUT has shared control, personal liability, and limited life

  • Partnership

Financial statements are prepared on the assumption that the company will continue in business for the foreseeable future.Where there is intention or belief that company will cease to operate then separate rules will apply

  • Going concern

58. The qualitative characteristic that allows for valid comparisons between different entities is:

  • a) Consistency
  • b) Comparability
  • c) Faithful Representation
  • d) Relevance

24. Which qualitative characteristic of accounting information relates to the absence of error and bias?

  • a) Relevance
  • b) Reliability
  • c) Neutrality
  • d) Understandability

41. The qualitative characteristic that allows for the making of predictions about future outcomes is:

  • a) Faithful Representation
  • b) Predictive value
  • c) Comparability
  • d) Reliability

Debits: Expenses, Assets, DividendsCredits: Revenues, Liabilities, Stockholders' Equity

  • DEAD CRLS

the qualitative characteristic that enables users to identify and understand similarities in, and differences among, items

  • comparability

71. The qualitative characteristic that allows for the making of predictions about future outcomes is:

  • a) Faithful Representation
  • b) Predictive value
  • c) Comparability
  • d) Reliability

28. When accounting information is capable of being verified through independent sources, it aligns with which qualitative characteristic?

  • a) Faithful Representation
  • b) Neutrality
  • c) Verifiability
  • d) Relevance

Management's explanation used to highlight favorable and unfavorable trends and significant risks facing the company

  • Management's Discussion and Analysis

10. Which qualitative characteristic of accounting information refers to the ability of users to confirm the accuracy of financial information?

  • a) Faithful Representation
  • b) Verifiability
  • c) Comparability
  • d) Consistency

23. The qualitative characteristic that allows users to make valid comparisons between different reporting periods is:

  • a) Relevance
  • b) Comparability
  • c) Faithful Representation
  • d) Timeliness

98. The qualitative characteristic that allows for valid comparisons between different entities is:

  • a) Consistency
  • b) Comparability
  • c) Faithful Representation
  • d) Relevance

74. Which qualitative characteristic of accounting information relates to the absence of favoritism towards any particular group of users?

  • a) Neutrality
  • b) Predictive value
  • c) Comparability
  • d) Reliability

21. The characteristic of accounting information that makes it capable of influencing decisions by users is:

  • a) Faithful Representation
  • b) Relevance
  • c) Predictive value
  • d) Comparability

Globally used accounting standards

  • International Financial Reporting Standards (IFRS)

49. Which qualitative characteristic of accounting information ensures that it is free from error and bias?

  • a) Understandability
  • b) Predictive value
  • c) Reliability
  • d) Timeliness

51. The qualitative characteristic that allows for the making of predictions about future outcomes is:

  • a) Faithful Representation
  • b) Predictive value
  • c) Comparability
  • d) Reliability

99. Which qualitative characteristic of accounting information ensures that it is free from error and bias?

  • a) Understandability
  • b) Predictive value
  • c) Reliability
  • d) Timeliness

31. When

  • a) Faithful Representation
  • b) Verifiability
  • c) Comparability
  • d) Consistency

Can different knowledgable and independent observers reach consensus (broad, although not necessarily complete agreement) that a particular depiction is a faithful representation?. Direct verification by auditorsVerification by reference to external sources or comparisons

  • Verifiability

1. Which fundamental qualitative characteristic of accounting information ensures that financial information is free from error and bias?

  • a) Relevance
  • b) Reliability
  • c) Faithful Representation
  • d) Comparability

46. When accounting information is stable and consistent over time, it adheres to which qualitative characteristic?

  • a) Neutrality
  • b) Relevance
  • c) Consistency
  • d) Verifiability

73. The characteristic of accounting information that ensures it remains relevant and reliable over time is:

  • a) Consistency
  • b) Timeliness
  • c) Comparability
  • d) Neutrality

80. When accounting information can be verified through inspection and measurement, it adheres to which qualitative characteristic?

  • a) Neutrality
  • b) Verifiability
  • c) Understandability
  • d) Relevance

i.e it can be used to confirm past events

  • Confirmatory value

Inclusion of a degree of caution in accounting judgements under conditions of uncertainty AVOID. Over statements of assets. Under statements of liabilities ...because both of these will lead to over statement of profit

  • Prudence

25. When accounting information faithfully represents the economic substance of transactions, it adheres to which qualitative characteristic?

  • a) Predictive value
  • b) Timeliness
  • c) Substance over form
  • d) Relevance

Company that is easily formed, has tax advantages, and is completely controlled by owner, BUT has personal liability and limited life

  • Sole Proprietorship

22. What qualitative characteristic of accounting information means that it can be reproduced by independent observers?

  • a) Consistency
  • b) Verifiability
  • c) Understandability
  • d) Neutrality

77. What qualitative characteristic of accounting information means that it can be verified by independent parties?

  • a) Understandability
  • b) Verifiability
  • c) Predictive value
  • d) Comparability

87. What qualitative characteristic of accounting information means that it can be verified by independent parties?

  • a) Understandability
  • b) Verifiability
  • c) Predictive value
  • d) Comparability

Financial information is material if excluding it or misstating it could influence users decision makingExampleError of £10m in expense item. Overall profit £500m . Error is not material at 2% profitError of £10m in expense item. Overall profit £20m . Error is material at 50% profit

  • Materiality

having information available to decision makers in time to be capable of influencing their decisions

  • timeliness

26. What qualitative characteristic of accounting information refers to its capacity to make a difference in the decisions of users?

  • a) Relevance
  • b) Comparability
  • c) Verifiability
  • d) Consistency

In the absence of information to the contrary, it should be assumed that a company will continue to operate indefinitely

  • Continuity (Going Concern)

90. When accounting information can be verified through inspection and measurement, it adheres to which qualitative characteristic?

  • a) Neutrality
  • b) Verifiability
  • c) Understandability
  • d) Relevance

95. The ability of accounting information to faithfully represent the financial position and performance of an entity is associated with which qualitative characteristic?

  • a) Predictive value
  • b) Comparability
  • c) Faithful Representation
  • d) Timeliness

Information should portray the economic event that it is intending to portray completely, accurately, and without biasInformation should be complete, neutral, and free from error

  • Faithful Representation

75. The ability of accounting information to faithfully represent the financial position and performance of an entity is associated with which qualitative characteristic?

  • a) Predictive value
  • b) Comparability
  • c) Faithful Representation
  • d) Timeliness

56. When accounting information is stable and consistent over time, it adheres to which qualitative characteristic?

  • a) Neutrality
  • b) Relevance
  • c) Consistency
  • d) Verifiability

An expense must be recorded and reported in the same period as the revenue that it helped generate

  • Expense Recognition (Matching)

An attempt to provide a coherent set of accounting principles and concepts to guide the development of consistent accounting standards

  • The conceptual framework

82. What qualitative characteristic of accounting information ensures that it can be easily comprehended by users?

  • a) Understandability
  • b) Relevance
  • c) Consistency
  • d) Verifiability

19. When financial information can be verified through inspection, measurement, and review, it aligns with which qualitative characteristic?

  • a) Understandability
  • b) Consistency
  • c) Verifiability
  • d) Relevance

47. What qualitative characteristic of accounting information means that it can be verified by independent parties?

  • a) Understandability
  • b) Verifiability
  • c) Predictive value
  • d) Comparability

81. The qualitative characteristic that allows for the making of predictions about future outcomes is:

  • a) Faithful Representation
  • b) Predictive value
  • c) Comparability
  • d) Reliability

Net Sales - Cost of Goods Sold

  • Gross Margin

54. Which qualitative characteristic of accounting information relates to the absence of favoritism towards any particular group of users?

  • a) Neutrality
  • b) Predictive value
  • c) Comparability
  • d) Reliability

68. The qualitative characteristic that allows for valid comparisons between different entities is:

  • a) Consistency
  • b) Comparability
  • c) Faithful Representation
  • d) Relevance

without bias in the selection or presentation of financial information

  • neutrality

all information necessary for a user to understand the phenomenon being depicted

  • completeness

Current Assets / Current Liabilities

  • Current Ratio

61. The qualitative characteristic that allows for the making of predictions about future outcomes is:

  • a) Faithful Representation
  • b) Predictive value
  • c) Comparability
  • d) Reliability

9. When information is free from material error, it aligns with which qualitative characteristic?

  • a) Understandability
  • b) Timeliness
  • c) Relevance
  • d) Reliability

40. When accounting information can be verified through inspection and measurement, it adheres to which qualitative characteristic?

  • a) Neutrality
  • b) Verifiability
  • c) Understandability
  • d) Relevance

Relevance. Information is relevant if it is capable of making a difference to the decision made by users (it is capable of this if it has predictive value or confirmatory value) Faithful representation. Information must faithfully represent the substance of what it purports to represent . a faithful representation is, to the maximu extent possible, complete, neutral and free from error

  • Fundamental Qualitative Characteristics

48. The qualitative characteristic that allows for valid comparisons between different entities is:

  • a) Consistency
  • b) Comparability
  • c) Faithful Representation
  • d) Relevance

76. When accounting information is stable and consistent over time, it adheres to which qualitative characteristic?

  • a) Neutrality
  • b) Relevance
  • c) Consistency
  • d) Verifiability

44. Which qualitative characteristic of accounting information relates to the absence of favoritism towards any particular group of users?

  • a) Neutrality
  • b) Predictive value
  • c) Comparability
  • d) Reliability

66. When accounting information is stable and consistent over time, it adheres to which qualitative characteristic?

  • a) Neutrality
  • b) Relevance
  • c) Consistency
  • d) Verifiability

Revenues related to the financial year are recorded in the income statement whether the company received the revenue or not ( e.g credit sales)Expenses related to the financial year are recorded in the income statement whether the company paid the expense or not .Annual rent is £120, company only paid 100 Recorded expense in income statement is £120

  • Accruals (Matching)

U.S. organization with the power to set accounting rules for publicly traded companies

  • Securities and Exchange Commission (SEC)

89. Which qualitative characteristic of accounting information ensures that it is free from error and bias?

  • a) Understandability
  • b) Predictive value
  • c) Reliability
  • d) Timeliness

52. What qualitative characteristic of accounting information ensures that it can be easily comprehended by users?

  • a) Understandability
  • b) Relevance
  • c) Consistency
  • d) Verifiability

Current Assets - Current Liabilities

  • Working Capital

55. The ability of accounting information to faithfully represent the financial position and performance of an entity is associated with which qualitative characteristic?

  • a) Predictive value
  • b) Comparability
  • c) Faithful Representation
  • d) Timeliness

15. Which qualitative characteristic of accounting information means that it is stable and consistent over time?

  • a) Neutrality
  • b) Faithful Representation
  • c) Consistency
  • d) Predictive Value

78. The qualitative characteristic that allows for valid comparisons between different entities is:

  • a) Consistency
  • b) Comparability
  • c) Faithful Representation
  • d) Relevance

18. The qualitative characteristic that allows financial information to be compared across different entities is:

  • a) Consistency
  • b) Comparability
  • c) Faithful Representation
  • d) Relevance

67. What qualitative characteristic of accounting information means that it can be verified by independent parties?

  • a) Understandability
  • b) Verifiability
  • c) Predictive value
  • d) Comparability

85. The ability of accounting information to faithfully represent the financial position and performance of an entity is associated with which qualitative characteristic?

  • a) Predictive value
  • b) Comparability
  • c) Faithful Representation
  • d) Timeliness

37. What qualitative characteristic of accounting information means that it can be verified by independent parties?

  • a) Understandability
  • b) Verifiability
  • c) Predictive value
  • d) Comparability

Gross Margin - Operating Expenses

  • Income from Operations

42. What qualitative characteristic of accounting information ensures that it can be easily comprehended by users?

  • a) Understandability
  • b) Relevance
  • c) Consistency
  • d) Verifiability

12. The ability of accounting information to remain free from bias or prejudice is associated with which qualitative characteristic?

  • a) Understandability
  • b) Verifiability
  • c) Neutrality
  • d) Relevance

Accounting information should be made available to users in time to support their decision makingGenerally, the older the information is the less relevant it is for users decision making

  • Timeliness

43. The characteristic of accounting information that ensures it remains relevant and reliable over time is:

  • a) Consistency
  • b) Timeliness
  • c) Comparability
  • d) Neutrality

91. The qualitative characteristic that allows for the making of predictions about future outcomes is:

  • a) Faithful Representation
  • b) Predictive value
  • c) Comparability
  • d) Reliability

Comparability, Verifiability, Timeliness, & Understandability

  • Enhancing Characteristics

57. What qualitative characteristic of accounting information means that it can be verified by independent parties?

  • a) Understandability
  • b) Verifiability
  • c) Predictive value
  • d) Comparability

84. Which qualitative characteristic of accounting information relates to the absence of favoritism towards any particular group of users?

  • a) Neutrality
  • b) Predictive value
  • c) Comparability
  • d) Reliability

The primary accounting standard setter in the U.S.U.S. organization to whom the power to set accounting rules for publicly traded companies has been delegated

  • Financial Accounting Standards Board (FASB)

20. Which qualitative characteristic of accounting information means that it should not favor one set of users over another?

  • a) Neutrality
  • b) Predictive value
  • c) Comparability
  • d) Understandability

70. When accounting information can be verified through inspection and measurement, it adheres to which qualitative characteristic?

  • a) Neutrality
  • b) Verifiability
  • c) Understandability
  • d) Relevance

65. The ability of accounting information to faithfully represent the financial position and performance of an entity is associated with which qualitative characteristic?

  • a) Predictive value
  • b) Comparability
  • c) Faithful Representation
  • d) Timeliness

2. When financial information is capable of making a difference in the decisions of users, it possesses which qualitative characteristic?

  • a) Understandability
  • b) Relevance
  • c) Timeliness
  • d) Verifiability

Financial information is understandable if it is presented clearly and concisely, using recognisable classification and descriptions. The significance of information can be perceived by the user . Terminology should be simplified as much as possible

  • Understandability

13. Which qualitative characteristic of accounting information refers to the faithful depiction of the economic substance of a transaction?

  • a) Comparability
  • b) Substance over form
  • c) Reliability
  • d) Timeliness

94. Which qualitative characteristic of accounting information relates to the absence of favoritism towards any particular group of users?

  • a) Neutrality
  • b) Predictive value
  • c) Comparability
  • d) Reliability

45. The ability of accounting information to faithfully represent the financial position and performance of an entity is associated with which qualitative characteristic?

  • a) Predictive value
  • b) Comparability
  • c) Faithful Representation
  • d) Timeliness

36. When accounting information is stable and consistent over time, it adheres to which qualitative characteristic?

  • a) Neutrality
  • b) Relevance
  • c) Consistency
  • d) Verifiability

Information that has the ability to influence decisions made by the users of the information

  • Relevance

7. What is the primary goal of enhancing the qualitative characteristics of accounting information?

  • a) Reducing complexity
  • b) Increasing relevance
  • c) Better decision-making
  • d) Minimizing errors

Cash Flows from Operating ExpensesCash Flows from Investing ExpensesCash Flows from Financing Expenses

  • Statement of Cash Flows

100. When accounting information can be verified through inspection and measurement, it adheres to which qualitative characteristic?

  • a) Neutrality
  • b) Verifiability
  • c) Understandability
  • d) Relevance

79. Which qualitative characteristic of accounting information ensures that it is free from error and bias?

  • a) Understandability
  • b) Predictive value
  • c) Reliability
  • d) Timeliness

Users who have a reasonable knowledge of accounting and business can, with reasonable study effort, comprehend the meaning of the information

  • Understandability

93. The characteristic of accounting information that ensures it remains relevant and reliable over time is:

  • a) Consistency
  • b) Timeliness
  • c) Comparability
  • d) Neutrality

69. Which qualitative characteristic of accounting information ensures that it is free from error and bias?

  • a) Understandability
  • b) Predictive value
  • c) Reliability
  • d) Timeliness

encompass all qualitative aspects; see page 51

  • relevance and faithful representation

Information is capable of making a difference in a business decisionMaterial information that has predictive or confirmatory value

  • Relevance

Opinion on whether the financial statements fairly represent the financial position of the company

  • Audit Report

39. Which qualitative characteristic of accounting information ensures that it is free from error and bias?

  • a) Understandability
  • b) Predictive value
  • c) Reliability
  • d) Timeliness

3. What fundamental qualitative characteristic of accounting information means that it must be capable of being understood by users who have a reasonable knowledge of business and economic activities?

  • a) Understandability
  • b) Comparability
  • c) Relevance
  • d) Timeliness

Comparibility Verifiability Timeliness Understandability

  • Ways to enhance qualitative characteristics

11. What qualitative characteristic of accounting information ensures that it can be used to predict future outcomes with a reasonable degree of certainty?

  • a) Predictive value
  • b) Reliability
  • c) Neutrality
  • d) Comparability

The life of a company may be divided into artificial time periods so net income can be measured for a specific period of time

  • Time Period

Information allows users to identify similarities and differences between two or more items

  • Comparability

Going concern AccrualsConsistency Prudence

  • Accounting principles

62. What qualitative characteristic of accounting information ensures that it can be easily

  • a) Understandability
  • b) Relevance
  • c) Consistency
  • d) Verifiability
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