For financial information to be useful for analysis, it must be both relevant and reliable. Other required qualitative characteristics are:
A) predictability and conservatism.
B) timeliness and cost.
C) understandability and comparability.
D) consistency and creativity.

Question

Quizplus · Accepted Answer

The required qualitative characteristics for financial information to be useful for analysis are understandability and comparability in addition to relevance and reliability. Predictability, conservatism, timeliness, and cost are not required characteristics for financial information. Consistency is also an important characteristic but not one of the given options. Creativity is not a desired characteristic as it suggests manipulation or bias in the reporting.

For Financial Information to Be Useful for Analysis, It Must