151. Match the following characteristics with the statements about each qualitative characteristic's importance. 1. Accounting information must be verifiable and faithfully represent actual transactions. Understandability ____ 2. This quality refers to an amount large enough to affect a decision. Relevance ____ 3. Accounting information should use the least optimistic estimate. Conservatism ____ 4. Users must be able to compare accounting information of a firm with its prior year information. Comparability ____ 5. Those willing to spend the time should be provided with comprehensible accounting information. Consistency ____ 6. The accounting information must be information that could affect a decision. Reliability ____ 7. This quality allows users to analyze two or more companies and look for similarities and differences. Materiality ____ | |
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