The qualitative characteristics describe the attributes that enhance the usefulness of financial reporting information.The FASB's conceptual framework sets forth the qualitative characteristic of _____ that refers to information that can make a difference in a resource allocation decision by helping users to form predictions about the outcomes of future events and to confirm or correct prior information or expectations.Receiving information in a timely manner (referred to as timeliness) so that it can influence decisions is an aspect of this qualitative characteristic
A)relevance
B)reliability
C)comparability
D)materiality
E)understandability

Question

Quizplus · Accepted Answer

The qualitative characteristic described in the question is relevance, which means that the information has predictive and confirmatory value in helping users make resource allocation decisions. Timeliness is also a relevant factor in enhancing the usefulness of financial reporting information.

The Qualitative Characteristics Describe the Attributes That Enhance the Usefulness