The qualitative characteristics describe the attributes that enhance the usefulness of financial reporting information.The FASB's conceptual framework sets forth the qualitative characteristic of _____ that refers to the faithfulness with which accounting information represents what it purports to represent and the extent to which the information is both verifiable by independent measurers and neutral with respect to the interest of a particular user group.
A)relevance
B)reliability
C)comparability
D)materiality
E)understandability

Question

Quizplus · Accepted Answer

The qualitative characteristic described in the question is reliability, which refers to the accuracy and verifiability of accounting information. Relevance refers to the information's usefulness in decision-making, comparability refers to the ability to make meaningful comparisons between different periods or companies, materiality refers to the importance of information in influencing economic decisions, and understandability refers to the clear and concise presentation of information.

The Qualitative Characteristics Describe the Attributes That Enhance the Usefulness