The two fundamental qualitative characteristics are
A) relevance and timeliness.
B) faithful representation and relevance.
C) comparability and relevance.
D) understandability and relevance.

Question

Quizplus · Accepted Answer

Faithful representation and relevance are the two fundamental qualitative characteristics because they are the most important qualities that financial information can have. Faithful representation means that the information is accurate and complete, and relevance means that the information is useful for making decisions.

The Two Fundamental Qualitative Characteristics Are