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The following selected items relate to the qualitative characteristics of useful information: 1. Comparability 7. Predictive...

The following selected items relate to the qualitative characteristics of useful information:

1.

 Comparability

7.

 Predictive value

2.

 Materiality

8.

 Consistency

3.

 Neutrality

9.

 Understandability

4.

 Timeliness

10.

 Verifiability

5.

 Faithful representation

11.

 Completeness

6.

 Feedback value


Match these qualitative characteristics to the following statements.

(a)

Financial information must be available to decision makers before the information loses its ability to influence their decisions.

 select a qualitative characteristic

VerifiabilityComparabilityMaterialityUnderstandabilityNeutralityFaithful representationTimelinessCompletenessFeedback valuePredictive valueConsistency
(b)

Financial information provides a basis to evaluate decisions made in the past.

 select a qualitative characteristic

ComparabilityTimelinessFaithful representationVerifiabilityPredictive valueFeedback valueCompletenessMaterialityConsistencyUnderstandabilityNeutrality
(c)

Financial information cannot be selected, prepared, or presented to favour one set of interested users over another.

 select a qualitative characteristic

ComparabilityFeedback valueMaterialityConsistencyVerifiabilityCompletenessPredictive valueNeutralityTimelinessFaithful representationUnderstandability
(d)

Financial information reports the economic substance of a transaction, not its legal form.

 select a qualitative characteristic

UnderstandabilityPredictive valueVerifiabilityFeedback valueCompletenessComparabilityMaterialityNeutralityTimelinessFaithful representationConsistency
(e)

Financial information helps reduce uncertainty about the future.

 select a qualitative characteristic

UnderstandabilityConsistencyVerifiabilityFaithful representationComparabilityMaterialityTimelinessNeutralityCompletenessFeedback valuePredictive value
(f)

Financial information must be provided in such a way that knowledgeable and independent people agree that it faithfully represents the economic reality of the transaction or event.

 select a qualitative characteristic

ComparabilityFaithful representationMaterialityNeutralityTimelinessUnderstandabilityFeedback valuePredictive valueConsistencyVerifiabilityCompleteness
(g)

Financial information about one company can be evaluated in relation to financial information from another company.

 select a qualitative characteristic

VerifiabilityTimelinessNeutralityCompletenessMaterialityComparabilityUnderstandabilityFaithful representationFeedback valuePredictive valueConsistency
(h)

Financial information is provided in a way that enables reasonably informed users to interpret and comprehend the meaning of the information provided in the financial statements.

 select a qualitative characteristic

ConsistencyMaterialityNeutralityUnderstandabilityFeedback valueVerifiabilityComparabilityCompletenessTimelinessFaithful representationPredictive value
(i)

Financial information in a company is prepared using the same principles and methods year after year.

 select a qualitative characteristic

Predictive valueUnderstandabilityTimelinessComparabilityVerifiabilityConsistencyMaterialityFaithful representationNeutralityCompletenessFeedback value
(j)

Financial information that is insignificant and not likely to influence a decision does not need to be disclosed.

 select a qualitative characteristic

Predictive valueTimelinessComparabilityNeutralityVerifiabilityFaithful representationMaterialityFeedback valueConsistencyUnderstandabilityCompleteness
(k)

Financial information includes all information necessary to show the economic reality of the transaction.

Solutions

Expert Solution

S.N.

Statement

Qualitative Characterstics

Match Number

a)

Financial Information must be available to decision maler before the information lost its ability to infulence their decisions.

Timeliness

(4)

b)

Financial Information provides the basis to evaluate decisions made in the past

Feedback Value

(6)

C )

Financial information cannot be selected,prepared,or presented to favor one set of interested user over another.

Neutrality

(3)

d)

Financial information reports the economic substance of a transaction, not its legal form.

Faithful Representation

(5)

e)

Financial information helps to reduce uncertainity about in the future.

Predictive Value

(7)

f)

Financial information should be provided in such a way that knowledge and independent people agree that is faithfully represent economic reality of transations and events.

Verifiability

(10)

g)

Financial information about one company can be evaluated in relation to financial information from other Company.

Comparability

(1)

h)

Financial information should be provided in a way that enables reasonably informed users to interpret and comprehend the meaning of the information provided in the financial statement.

Understandability

(9)

i)

Financial information in a company is prepared using the same principal and methods year after year.

Consistency

(8)

j)

Financial information that is insignificant and not likely to influence a decision does not need to be disclosed.

Materiality

(2)

K)

Financial information includes all information necessary to show the economic reality of the transactions.

Completeness

(11)

ekkarill92 answered 2 years ago
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