Under the Framework the four principle qualitative characteristics for General Purpose Financial Statements are:
A)relevance,reliability,materiality,conservatism
B)relevance,reliability,comparability,understandability
C)uniformity,consistency,prudence,readability
D)comparability,verifiability,timeliness,understandability

Question

Quizplus · Accepted Answer

The four principle qualitative characteristics for General Purpose Financial Statements are relevance, reliability, comparability, and understandability. Materiality and conservatism are not considered as separate principles in the Framework, and uniformity, consistency, and prudence are not one of the four principal qualitative characteristics. Verifiability and timeliness are also important characteristics, but they are considered sub-characteristics of reliability and relevance respectively. Therefore, the best choice is B.

Under the Framework the Four Principle Qualitative Characteristics for General