You want to improve the qualitative characteristics of your firm's financial statements. Which of the following options would most likely improve the timeliness of your company's financial statements?
A) increasing the number of disclosures
B) changing the timing of when revenues are recognized
C) increasing the frequency of statements from annually to quarterly
D) decreasing the useful life of property, plant, and equipment from ten years to five

Question

Quizplus · Accepted Answer

Increasing the frequency of financial statements from annually to quarterly would improve the timeliness of your company's financial statements by providing more up-to-date information for stakeholders. A, B, and D are not necessarily related to improving timeliness, but rather may improve other qualitative characteristics such as relevance, reliability, or comparability.

You Want to Improve the Qualitative Characteristics of Your Firm's