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)To increase the frequency of issue from annually to quarterly
B)To increase the number of disclosures
C)To increase the amortization period for capital assets from 5 to years.
D)To change the timing of when revenues are recognized

Question

Quizplus · Accepted Answer

Increasing the frequency of issue from annually to quarterly would improve the timeliness of the financial statements as it would provide more up-to-date information to users. Other options, such as increasing disclosures or changing the timing of revenue recognition, may improve other qualitative characteristics such as completeness or reliability, but would not directly affect the timeliness of the financial statements. Increasing the amortization period for capital assets does not affect the financial statements directly, but rather affects how the assets are recognized over time.

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