When preparing financial reports "users are assumed to have a reasonable knowledge of the business and economic activities and accounting and a willingness to study the information with reasonable diligence".This statement is consistent with the qualitative characteristic of:
A)materiality.
B)reliability.
C)understandability.
D)comparability.
E)relevance.

Question

Quizplus · Accepted Answer

The statement "users are assumed to have a reasonable knowledge of the business and economic activities and accounting and a willingness to study the information with reasonable diligence" is consistent with the qualitative characteristic of understandability.

When Preparing Financial Reports "Users Are Assumed to Have a Reasonable