________________is the qualitative characteristic that simplifies complex transactions in external financial reports without sacrificing the relevance or faithful representation of those reports.
A) timeliness.
B) verifiability.
C) comparability.
D) understandability.

Question

Quizplus · Accepted Answer

Understandability is the qualitative characteristic that simplifies complex transactions in external financial reports without sacrificing the relevance or faithful representation of those reports. It ensures that financial information is presented in a clear and concise manner, making it easily understandable for users of the reports who may not have a background in accounting.

________________Is the Qualitative Characteristic That Simplifies Complex Transactions in External