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The following selected items relate to the qualitative characteristics of useful information: 1
The following selected items relate to the qualitative characteristics of useful information:
|
1. |
Comparability |
7. |
Predictive value | |||
|---|---|---|---|---|---|---|
|
2. |
Materiality |
8. |
Consistency | |||
|
3. |
Neutrality |
9. |
Understandability | |||
|
4. |
Timeliness |
10. |
Verifiability | |||
|
5. |
Faithful representation |
11. |
Completeness | |||
|
6. |
Feedback value |
Match these qualitative characteristics to the following statements.
| (a) |
Financial information must be available to decision makers before the information loses its ability to influence their decisions. |
select a qualitative characteristic
|
||
|---|---|---|---|---|
| (b) |
Financial information provides a basis to evaluate decisions made in the past. |
select a qualitative characteristic
|
||
| (c) |
Financial information cannot be selected, prepared, or presented to favour one set of interested users over another. |
select a qualitative characteristic
|
||
| (d) |
Financial information reports the economic substance of a transaction, not its legal form. |
select a qualitative characteristic
|
||
| (e) |
Financial information helps reduce uncertainty about the future. |
select a qualitative characteristic
|
||
| (f) |
Financial information must be provided in such a way that knowledgeable and independent people agree that it faithfully represents the economic reality of the transaction or event. |
select a qualitative characteristic
|
||
| (g) |
Financial information about one company can be evaluated in relation to financial information from another company. |
select a qualitative characteristic
|
||
| (h) |
Financial information is provided in a way that enables reasonably informed users to interpret and comprehend the meaning of the information provided in the financial statements. |
select a qualitative characteristic
|
||
| (i) |
Financial information in a company is prepared using the same principles and methods year after year. |
select a qualitative characteristic
|
||
| (j) |
Financial information that is insignificant and not likely to influence a decision does not need to be disclosed. |
select a qualitative characteristic
|
||
| (k) |
Financial information includes all information necessary to show the economic reality of the transaction. |
select a qualitative characteristic
|
Expert Solution
ans.
The following selected items relate to the qualitative characteristics of useful information:
|
1. |
Comparability |
7. |
Predictive value | |||
|---|---|---|---|---|---|---|
|
2. |
Materiality |
8. |
Consistency | |||
|
3. |
Neutrality |
9. |
Understandability | |||
|
4. |
Timeliness |
10. |
Verifiability | |||
|
5. |
Faithful representation |
11. |
Completeness | |||
|
6. |
Feedback value |
Match these qualitative characteristics to the following statements.
| (a) |
Financial information must be available to decision makers before the information loses its ability to influence their decisions. |
select a qualitative characteristic
|
||
|---|---|---|---|---|
| (b) |
Financial information provides a basis to evaluate decisions made in the past. |
select a qualitative characteristic
|
||
| (c) |
Financial information cannot be selected, prepared, or presented to favour one set of interested users over another. |
select a qualitative characteristic
|
||
| (d) |
Financial information reports the economic substance of a transaction, not its legal form. |
select a qualitative characteristic
|
||
| (e) |
Financial information helps reduce uncertainty about the future. |
select a qualitative characteristic
|
||
| (f) |
Financial information must be provided in such a way that knowledgeable and independent people agree that it faithfully represents the economic reality of the transaction or event. |
select a qualitative characteristic
|
||
| (g) |
Financial information about one company can be evaluated in relation to financial information from another company. |
select a qualitative characteristic
|
||
| (h) |
Financial information is provided in a way that enables reasonably informed users to interpret and comprehend the meaning of the information provided in the financial statements. |
select a qualitative characteristic
|
||
| (i) |
Financial information in a company is prepared using the same principles and methods year after year. |
select a qualitative characteristic
|
||
| (j) |
Financial information that is insignificant and not likely to influence a decision does not need to be disclosed. |
select a qualitative characteristic
|
||
| (k) |
Financial information includes all information necessary to show the economic reality of the transaction. |
select a qualitative characteristic
|
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