Two primary qualitative characteristics of Financial Statements are -
A)Understandability and Materiality .
B)Relevance and Reliability .
C)Relevance and Understandability .
D)Materiality and Reliability

Question

Quizplus · Accepted Answer

Relevance and Reliability are the two primary qualitative characteristics of financial statements according to the conceptual framework for financial reporting. Relevance ensures the information makes a difference in decision-making, while reliability ensures that the information is dependable and accurate.

Two Primary Qualitative Characteristics of Financial Statements Are -