FASB board members make standard-setting decisions guided by a conceptual framework that addresses the qualitative characteristics of accounting information. Which of the qualitative characteristics of accounting information holds that the information should represent what it is supposed to represent, in the sense that the information should correspond to the phenomenon being reported, and it should be verifiable and free from bias?
A)Relevance
B)Reliability
C)Comparability.
D)Subjective
E)all of the above

Question

Quizplus · Accepted Answer

The qualitative characteristic described in the question is reliability, which emphasizes that the information should be verifiable, free from bias, and faithfully represent the phenomenon being reported. Choice A (relevance) is also a qualitative characteristic but emphasizes the importance of information being pertinent and useful to decision-making. Choice C (comparability) refers to the ability to compare information across different entities and time periods. Choice D (subjective) is not a qualitative characteristic but rather a term used to describe information that is based on personal opinions or viewpoints. Therefore, the answer is B.

FASB Board Members Make Standard-Setting Decisions Guided by a Conceptual