According to accounting standards, which of the following is a qualitative characteristic of financial information?
Practice Questions
1 question
Q1
According to accounting standards, which of the following is a qualitative characteristic of financial information?
Relevance
Materiality
Consistency
All of the above
All of the options listed are qualitative characteristics of financial information as per accounting standards, emphasizing the importance of providing useful information to users.
Questions & Step-by-step Solutions
1 item
Q
Q: According to accounting standards, which of the following is a qualitative characteristic of financial information?
Solution: All of the options listed are qualitative characteristics of financial information as per accounting standards, emphasizing the importance of providing useful information to users.
Steps: 5
Step 1: Understand that qualitative characteristics are features that make financial information useful.
Step 2: Recognize that accounting standards define these characteristics to help users make informed decisions.
Step 3: Identify the options provided in the question to see if they align with the qualitative characteristics.
Step 4: Confirm that all options listed are indeed recognized as qualitative characteristics in accounting standards.
Step 5: Conclude that the answer is that all options are qualitative characteristics of financial information.
