Company A issuing its annual financial reports within one month of the end of the year is an example of which enhancing quality of accounting information?
A) Comparability.
B) Timeliness.
C) Understandability.
D) Verifiability.

Question

Quizplus · Accepted Answer

Timeliness refers to the promptness with which financial information is made available to users. Company A issuing its financial reports within one month of the end of the year shows that they are providing timely information. Comparability is the ability to compare financial information across different periods or companies, Understandability is the ease with which financial information can be comprehended by users, and Verifiability is the ability to ensure that financial information is accurate and reliable through independent verification.

Company a Issuing Its Annual Financial Reports Within One Month