If a company prepares its financial statements three years after the end of their accounting period,they have violated the qualitative characteristic of:
A)understandability.
B)timeliness.
C)verifiability.
D)materiality.

Question

Quizplus · Accepted Answer

The qualitative characteristic that the company violated is timeliness. Timeliness means that financial information should be available to decision-makers in a timely manner. Waiting three years to prepare financial statements after the end of their accounting period is not timely and may not be useful for decision-making.

If a Company Prepares Its Financial Statements Three Years After