According to the FASB, the usefulness of accounting is judged by which of the following two prime qualitative characteristics of accounting information?
A) Comparability and neutrality
B) Understandability and comparability
C) Verifiability and timeliness
D) Relevance and reliability

Question

Quizplus · Accepted Answer

The FASB defines relevance and reliability as the two prime qualitative characteristics that determine the usefulness of accounting information. Relevant information is capable of making a difference in a decision-making process, while reliable information can be depended upon to represent the financial position of an entity in an accurate manner.

According to the FASB, the Usefulness of Accounting Is Judged