Matching
Match the descriptions with the qualitative characteristics of accounting information
Premises:
Information that helps the statement user confirm fulfillment or no fulfillment of prior expectations or decisions is said to have this qualitative characteristic.
This qualitative characteristic means simply that the information should be dependable; such information is verifiable, is a faithful representation of the company's financial affairs, and is reasonably free of error and bias.
This qualitative characteristic means that accounting information is capable of making a difference in a decision by the report user.
If an entity uses the same accounting treatment for similar events and data from period to period, this qualitative characteristic is being met.
If information is relevant, it will have this qualitative characteristic and enable statement users in making predictions about the meaning and ultimate outcome of events giving rise to the information.
This qualitative characteristic is indicated when independent measurers obtain similar results.
Information that is presented soon enough after events are reported to be useful in decision making would meet this qualitative characteristic.
This is the concept that data shown in the financial reports reflect what really happened.
Often referred to as objectivity; it is the idea that the financial statements are not prepared in a way to favor one group of users (management, owners, creditors, employees, etc.) over other groups.
When the financial data is presented in such a manner that it can be meaningfully compared with the same data for other companies, it meets this qualitative characteristic.
Responses:
Comparability
Consistency
Feedback value
Neutrality
Predictive value
Relevance
Reliability
Representational faithfulness
Timeliness
Verifiability
Correct Answer:
Premises:
Responses:
Information that helps the statement user confirm fulfillment or no fulfillment of prior expectations or decisions is said to have this qualitative characteristic.
This qualitative characteristic means simply that the information should be dependable; such information is verifiable, is a faithful representation of the company's financial affairs, and is reasonably free of error and bias.
This qualitative characteristic means that accounting information is capable of making a difference in a decision by the report user.
If an entity uses the same accounting treatment for similar events and data from period to period, this qualitative characteristic is being met.
If information is relevant, it will have this qualitative characteristic and enable statement users in making predictions about the meaning and ultimate outcome of events giving rise to the information.
This qualitative characteristic is indicated when independent measurers obtain similar results.
Information that is presented soon enough after events are reported to be useful in decision making would meet this qualitative characteristic.
This is the concept that data shown in the financial reports reflect what really happened.
Often referred to as objectivity; it is the idea that the financial statements are not prepared in a way to favor one group of users (management, owners, creditors, employees, etc.) over other groups.
When the financial data is presented in such a manner that it can be meaningfully compared with the same data for other companies, it meets this qualitative characteristic.
Premises:
Information that helps the statement user confirm fulfillment or no fulfillment of prior expectations or decisions is said to have this qualitative characteristic.
This qualitative characteristic means simply that the information should be dependable; such information is verifiable, is a faithful representation of the company's financial affairs, and is reasonably free of error and bias.
This qualitative characteristic means that accounting information is capable of making a difference in a decision by the report user.
If an entity uses the same accounting treatment for similar events and data from period to period, this qualitative characteristic is being met.
If information is relevant, it will have this qualitative characteristic and enable statement users in making predictions about the meaning and ultimate outcome of events giving rise to the information.
This qualitative characteristic is indicated when independent measurers obtain similar results.
Information that is presented soon enough after events are reported to be useful in decision making would meet this qualitative characteristic.
This is the concept that data shown in the financial reports reflect what really happened.
Often referred to as objectivity; it is the idea that the financial statements are not prepared in a way to favor one group of users (management, owners, creditors, employees, etc.) over other groups.
When the financial data is presented in such a manner that it can be meaningfully compared with the same data for other companies, it meets this qualitative characteristic.
Responses:
Related Questions
Q85: Define and give an example of all
Q86: Why is the cost principle dependent on
Q87: Explain the following statement. "Investors and creditors
Q88: Define the two aspects of the monetary
Q89: What two tests must be met in
Q90: Indicate in each case whether the item
Q91: Match the descriptions by entering the proper
Q92: Why are notes important in financial statements
Q93: How are the concepts of materiality and
Q94: Match the description with the accounting terms.
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents