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BE2-8, 9, 10: Qualitative definitions, relevance, usefulness

BE2-8, 9, 10: Qualitative definitions, relevance, usefulness, reliability, consistency

BE2-8 The accompanying chart shows the qualitative characteristics of accounting information. Fill in the blanks.
Usefulness
Relevance (a) (b) Timely
Reliability (c) Neutral (d)
Consistency and (e)

BE2-9 Given the characteristics of useful accounting information, complete each of the following statements.
(a) For information to be , it should have predictive or feedback value, and it must be presented on a timely basis.
(b) is the quality of information that gives assurance that it is free of error and bias; it can be depended on.
(c) means using the same accounting principles and methods from year to year within a company.

BE2-10 Here are some qualitative characteristics of accounting information:
1. Predictive value 3. Verifiable
2. Neutral 4. Timely
Match each qualitative characteristic to one of the following statements.
(a) Accounting information should help users make predictions about the outcome of past, present, and future events.
(b) Accounting information cannot be selected, prepared, or presented to favor one set of interested users over another.
(c) Accounting information must be proved to be free of error.
(d) Accounting information must be available to decision makers before it loses its capacity to influence their decisions.

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Answers:
A. Predictive value
B. Feedback value
C. Verifiable
D. Representational Faithfulness
E. Comparability

Answers:
1. For information to be relevant, it should have predictive or feedback value, and it must be ...

Solution Summary

This solution is comprised of a detailed explanation to fill the blank of the accompanying chart shows the qualitative characteristics of accounting information.

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