Qualitive Characteristics Flashcards
1
Q
Relevance
A
Usefulness of financial information in helping users make decisions.
2
Q
Faithful Representation
A
The requirement that financial information must accurately reflect real world economic events.
3
Q
Comparability
A
The ability to compare similar types of financial information effectively with other entries or over different reporting periods.
4
Q
Verifiability
A
The premise that financial information is supported by evidence such as source documents so that it can be used to check its accuracy.
5
Q
Timeliness
A
Providing information to users as quickly as possible so that it remains useful for decision making.
6
Q
Understandability
A
Financial information should be presented clearly and concisely so that users can easily understand it.
