This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: E2-2Correct. (Qualitative Characteristics)The qualitative characteristics that make accounting information useful for decision-making purposes are as follows. RelevanceTimeliness Representational faithfulnessReliabilityVerifiabilityComparabilityPredictive valueNeutralityConsistencyFeedback value InstructionsIdentify the appropriate qualitative characteristic(s) to be used given the information provided below. (a) Qualitative characteristic being employed when companies in the same industry are using the same accounting principles.Comparability(b)Quality of information that confirms users' earlier expectations.Feedback value(c)Imperative for providing comparisons of a company from period to period.Consistency(d)Ignores the economic consequences of a standard or rule.Neutrality(e)Requires a high degree of consensus among individuals on a given measurement.Verifiability(f) Predictive value is an ingredient of this primary quality of information....
View Full Document
- Spring '10
- Accounting, Qualitative Characteristics