Qualitative Characteristics}

Listed below are the fundamental and enhancing qualitative characteristics that make accounting information useful.

a. Relevance

b. Faithful representation

c. Comparability

d. Verifiability

e. Timeliness

f. Understandability

\section*{Required:}

Match the appropriate qualitative characteristic with the statements below (items can be used more than once).

1. When information is provided before it loses its ability to influence decisions, it has this characteristic.

2. When several accountants can agree on the measurement of an activity, the information possesses this characteristic.

3. If decision makers can comprehend the meaning of the information, the information is said to have this characteristic.

4. If information confirms prior expectations, it possesses this characteristic.

5. If information helps predict future events, it possesses this characteristic.

6. Freedom from bias is a component of this characteristic.

7. When several companies in the same industry use the same accounting methods, this qualitative characteristic exists.

8. Information that accurately portrays an economic event satisfies this characteristic.

Exercise