Financial reports are said to be verifiable when
A) they are available in time to influence users' decisions.
B) they are formatted clearly and concisely.
C) they demonstrate the similarities and differences among reported items.
D) users can agree on the meaning of reported items.

Question

Quizplus · Accepted Answer

Verifiability means that multiple users can agree on the meaning of the reported items. If the financial reports contain information that can be interpreted differently by different users, then they are not verifiable. Options A, B, and C are related to the usefulness and reliability of financial reports, but they do not relate to verifiability.

Financial Reports Are Said to Be Verifiable When