Fundamental qualitative characteristics of accounting information are:
A)Relevance and comparability.
B)Comparability and consistency.
C)Faithful representation and relevance.
D)Faithful representation and consistency.

Question

Quizplus · Accepted Answer

The fundamental qualitative characteristics of accounting information are faithful representation (information is complete, neutral and free from error) and relevance (information is capable of making a difference in decision-making). Option A is incorrect because comparability only complements relevance as a qualitative characteristic. Option B is incorrect as consistency only complements faithful representation as a qualitative characteristic.

Fundamental Qualitative Characteristics of Accounting Information Are