A key relationship among the conceptual framework components is the impact the objective of financial reporting has on the qualitative characteristics that are considered to make accounting information useful.

Question

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The objective of financial reporting sets the goal of providing information that is useful for decision-making. The qualitative characteristics (relevance, faithful representation, comparability, verifiability, timeliness, and understandability) are considered important because they help to achieve this goal by ensuring that the information provided is reliable, relevant, and understandable to users of financial statements. Therefore, there is a direct relationship between the objective of financial reporting and the qualitative characteristics that are deemed necessary to make accounting information useful.

A Key Relationship Among the Conceptual Framework Components Is the Impact