Identify the appropriate qualitative characteristic employed in the following information provided.
Predictive value is a primary quality of this information.
This information is free from material error and bias.
Companies in the same industry employ the same accounting principles.
A)relevance,reliability,consistency.
B)reliability,relevance,comparability.
C)reliability,relevance,consistency.
D)relevance,reliability,comparability.
E)None of the given answers.

Question

Quizplus · Accepted Answer

The appropriate qualitative characteristics employed in the information provided can be identified as follows:
1. "Predictive value is a primary quality of this information." - This statement refers to the characteristic of relevance. Predictive value is an aspect of relevance, indicating that the information is useful in making predictions about future outcomes.
2. "This information is free from material error and bias." - This statement refers to the characteristic of reliability (also known as faithful representation in some accounting frameworks). Information that is reliable is dependable, accurate, and can be trusted to represent the economic conditions or events it purports to represent.
3. "Companies in the same industry employ the same accounting principles." - This statement refers to the characteristic of comparability. When companies in the same industry use the same accounting principles, it allows users of financial statements to compare financial information across different companies more effectively.
Given these explanations, the correct answer that matches the qualitative characteristics employed in the information provided is:
4. relevance, reliability, comparability.
Therefore, the full answer to the input question is:
The appropriate qualitative characteristics employed in the information provided are relevance, reliability, and comparability.

Identify the Appropriate Qualitative Characteristic Employed in the Following Information