Four key qualities of accounting information are:
A) control, planning, analysis, and comparability.
B) identification, analysis, reliability, and timeliness.
C) relevance, reliability, comparability, and understandability.
D) understandability, identification, analysis, and relevance.

Question

Quizplus · Accepted Answer

The four key qualities of accounting information are relevance (the information is important and useful for decision-making), reliability (the information is accurate and can be trusted), comparability (the information can be compared across time periods or to other companies), and understandability (the information is presented in a way that can be easily understood by users). Choice A is incorrect as "control" and "planning" are not generally considered qualities of accounting information. Choice B is incorrect as "identification" and "timeliness" are not commonly recognized as key qualities of accounting information. Choice D is incorrect as "identification" is not a commonly recognized key quality of accounting information.

Four Key Qualities of Accounting Information Are