Identify which qualitative characteristic of financial reports is best described in each item below:
A) relevance, comparability, timeliness
B) faithful representation, consistency, understandability
C) faithful representation, comparability, timeliness
D) relevance, understandability, comparability

Question

Quizplus · Accepted Answer

Faithful representation ensures that the financial statements represent the economic substance of the transactions and events, and comparability allows users to compare the financial statements of different companies or the same company over time. Timeliness ensures that the financial statements are available to users in a timely manner.

Identify Which Qualitative Characteristic of Financial Reports Is Best Described