The qualitative characteristics of accounting data include
A) Assets reported on the balance sheet
B) All accounting information
C) Cash flows
D) Reliability

Question

Quizplus · Accepted Answer

The qualitative characteristics of accounting data refer to the attributes that make financial information useful for decision-making. These characteristics include relevance, reliability, comparability, and consistency. Of these, reliability is the only option listed that is a qualitative characteristic of accounting data. Assets reported on the balance sheet and cash flows are not qualitative characteristics, while "all accounting information" is too broad to qualify as an answer.

The Qualitative Characteristics of Accounting Data Include