The qualitative qualitative characteristics that make information in financial statements useful to investors identified within The Framework are:
A) Relevance, faithful representation, timeliness and comparability
B) Relevance and faithful representation
C) Relevance, faithful representation, comparability, verifiability, timeliness and understandability
D) Comparability, verifiability, timeliness and understandability

Question

Quizplus · Accepted Answer

The qualitative characteristics that make information in financial statements useful to investors identified within The Framework are relevance, faithful representation, comparability, verifiability, timeliness, and understandability. Option A only includes relevance, faithful representation, timeliness and comparability, while Option B only includes relevance and faithful representation. Option D only includes comparability, verifiability, timeliness, and understandability, hence the best choice is C which includes all the characteristics described in The Framework.

The Qualitative Qualitative Characteristics That Make Information in Financial Statements