International accounting standards Flashcards

1
Q

What are the 4 ways that the quality of information can be measured by?

A

Comparability
Relevance
Reliability
Understandability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Define comparability

A

Can one compare with previous years or other businesses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Define relevance

A

Information must be relevant to users

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Define reliability

A

Capable of being verified
Free from errors
Not bias

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Define understandability

A

Understood by all parties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly