What qualitative characteristic defines, the underlying influence in the preparation of financial statements is the weighing of costs and benefits regarding the presentation of information
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Q: Explain fundamental qualitative character tics of financial reporting.
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- The relevance of providing information in financial statements is subject to the constraint of a.Faithful representation b.Cost-benefit c.Comparability d.ReliabilityExplain the following and describe its impact on the financial statements: a. cost principle b. conservatism c. time period assumptionMateriality is an entity-specific aspect of which of the qualitative characteristics of financial information? Select one: a. Understandibility b. Timeliness C. Relevance d. Verifiability
- Which of the following facilitates the comparison of financial performance with one period to another period is possible ? O a. Historical cost concept O b. Going concern Assumption O c. Matching Concept O d. Consistency PrincipleWhich of the following sets includes only accounting assumptions and conventions? a. timeliness, prudence, historical cost, and neutrality b. matching, comparability, period of timem and reliability c. monetary unit, going concern, relevance, and materiality d. monetary unit, entity, going concern, and realization-recognitionWhich of the following facilitates the comparison of financial performance with one period to another period is possible ? a. Consistency Principle b. Historical cost concept c. Matching Concept d. Going concern Assumption
- Which of the following pars of items are the two fundamental qualitative characteristics of a useful financial information? a. Relevance and prudence b. Relevance and faithful representation c. Faithful representation and materiality d. Faithful representation and comparabilityClassify the Costs for Financial Statements?Explain with examples the qualitative characteristics of financial statement that would made itcredible in the evaluations of stakeholders.
- The trend in financial management is to treat expenditure on human resource as ____ a. as expense b. as liability c. as cost d. an investmentUnder Qualitative Characteristics of Useful Financial Information, which ofthe following is a qualitative characteristic associated with faithfulrepresentation:a. Completenessb. Free from errorc. Neutralityd. All the abovefor financial reporting infromation to be useful it has to possess certain qualitataive attributes. explain how these qualitative attributes contribute to providing information that is useful to relevant stakeholders