Reliable information rests on the following fundamental characteristics:
A)Relevance and neutrality
B)Comparability and consistency
C)Cost\benefit and materiality
D)Verifiability and conservatism

Question

Quizplus · Accepted Answer

Reliable information must be verifiable, meaning that it can be confirmed through independent sources, and must be conservative, meaning that any estimates of amounts or values used in financial statements must always err on the side of caution. These two characteristics are essential in ensuring the accuracy and transparency of financial reporting. Relevance and neutrality, comparability and consistency, and cost\benefit and materiality are also important characteristics of reliable information, but they are not as essential as verifiability and conservatism.

Reliable Information Rests on the Following Fundamental Characteristics