According to the FASB hierarchy of qualitative characteristics, the two primary qualities making accounting information useful are
A)understandability and decision usefulness
B)relevance and reliability
C)verifiability and neutrality
D)predictive value and feedback value

Question

Quizplus · Accepted Answer

The FASB hierarchy of qualitative characteristics identifies relevance and reliability as the two primary qualities that make accounting information useful. Relevant information is capable of making a difference in decisions, while reliable information is trustworthy and can be depended upon. Other qualities in the hierarchy include comparability, consistency, verifiability, timeliness, and understandability, but relevance and reliability are considered the most important.

According to the FASB Hierarchy of Qualitative Characteristics, the Two