Financial information that is verifiable means that
A)Information is clear and concise.
B)The information is useful to users with reasonable knowledge of accounting as well as business and economic activities.
C)Users are able to compare different companies, if all the companies use similar accounting practices.
D)Knowledgeable users agree that the financial information is faithfully represented.
E)The financial statements have not been prepared according to GAAP.

Question

Quizplus · Accepted Answer

Verifiable financial information means that knowledgeable users can agree that the information is faithfully represented, meaning it can be backed up by evidence and is free from error or bias. Options A, B, and C describe characteristics of financial information that may contribute to verifiability, but do not necessarily ensure it. Option E is incorrect, as financial statements must be prepared according to GAAP in order to be considered verifiable.

Financial Information That Is Verifiable Means That