Fundamental qualitative characteristics of accounting information are:
A) Relevance and comparability.
B) Comparability and consistency.
C) Faithful representation and relevance.
D) Neutrality and consistency.

Question

Quizplus · Accepted Answer

The fundamental qualitative characteristics of accounting information are faithful representation and relevance. Faithful representation means that the information should be complete, free from error, and accurately reflect the economic substance of the transaction or event. Relevance means that the information should be timely, have predictive or feedback value, and be capable of influencing the decisions of users.

Fundamental Qualitative Characteristics of Accounting Information Are