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A number of users would broadly agree that faithful representation has been achieved.
Which qualitative characteristic of financial information is described by this statement?
Comparability
Understandability
Verifiability
RelevanceAnswer is C but I can not understand. Please explain.
Look here:
However, Paragraph 2 of the chapter 2 summary says:
Relevance and faithful representation remain as the two fundamental qualitative characteristics. The four enhancing qualitative characteristics continue to be timeliness, understandability, verifiability and comparability.
That implies a and c are OK.
Note that this article is for students of Strategic Business Analysis – a very advanced paper. I really don’t think you should spend time on this question or its background knowledge.
Put a line through it and lose no sleep over it.
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