Which qualitative characteristic improves the usefulness of financial reporting information by enabling the users to identify similarities in and differences between two sets of economic data?
A) relevance.
B) timeliness.
C) economic substance.
D) comparability.

Question

Quizplus · Accepted Answer

Comparability is the qualitative characteristic that improves the usefulness of financial reporting information by enabling the users to identify similarities in and differences between two sets of economic data. Comparability allows users to make meaningful comparisons over time or across different entities. Relevance is the qualitative characteristic that ensures the information is capable of making a difference in the decisions of the users. Timeliness ensures that the information is available to the users in a timely manner, while economic substance ensures that the information accurately reflects the underlying economic reality of the transactions and events being reported.

Which Qualitative Characteristic Improves the Usefulness of Financial Reporting Information