Objective and Qualitative Characteristics Flashcards
1
Q
Name the two primary qualitative characteristics of financial reporting.
A
Relevance and Faithful Representation
2
Q
What are the three components of relevance?
A
Predictive Value
Confirmatory Value
Materiality
3
Q
What are the three components of faithful representation?
A
Completeness
Neutrality
Free from error
4
Q
What are the four enhancing characteristics?
A
Comparability
Verifiability
Timeliness
Understandability
5
Q
The process of reporting an item in the financial statements of an entity is called ___________.
A
Recognition
