Identify the appropriate qualitative characteristic employed in the following information:
A) relevance, faithful representation, consistency
B) faithful representation, relevance, comparability
C) faithful representation, relevance, consistency
D) relevance, faithful representation, comparability

Question

Quizplus · Accepted Answer

The appropriate qualitative characteristics for the given information are relevance, faithful representation, and comparability. These are key qualitative characteristics that financial information must possess according to accounting principles. Relevance ensures the information makes a difference in decision-making, faithful representation means the information accurately reflects the phenomena it purports to represent, and comparability allows users to identify and understand similarities and differences among items.

Identify the Appropriate Qualitative Characteristic Employed in the Following Information