Accounting Qualitative Characteristics

E2-2 (Qualitative Characteristics) The qualitative characteristics that make accounting information
useful for decision-making purposes are as follows.
Relevance Timeliness Representational faithfulness
Reliability Verifiability Comparability
Predictive value Neutrality Consistency
Feedback value
Instructions
Identify the appropriate qualitative characteristic(s) to be used given the information provided below.
(a) Qualitative characteristic being employed when companies in the same industry are using the
same accounting principles.
(b) Quality of information that confirms users' earlier expectations.
(c) Imperative for providing comparisons of a company from period to period.
(d) Ignores the economic consequences of a standard or rule.
(e) Requires a high degree of consensus among individuals on a given measurement.
(f) Predictive value is an ingredient of this primary quality of information.
(g) Two qualitative characteristics that are related to both relevance and reliability.
(h) Neutrality is an ingredient of this primary quality of accounting information.
(i) Two primary qualities that make accounting information useful for decision-making purposes.
(j) Issuance of interim reports is an example of what primary ingredient of relevance?

Solution Summary

This solution is comprised of a detailed explanation to identify the appropriate qualitative characteristic(s) to be used given the information provided below.