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) full disclosure.

Question

Quizplus · Accepted Answer

Timeliness refers to the information being available to users in a timely manner to make relevant decisions. By preparing the financial statements three years after the end of their accounting period, the company has violated the timeliness aspect of the qualitative characteristic of financial information.

If a Company Prepares Its Financial Statements Three Years After