OPTIONS:

Match the listed qualitative charateristics of useful financial information discussed in this chapter to each of the following statements below. (a) Information that has predictive value, confirmatory value, and is material is said to have this fundamental qualitative characteristic. (b) Information that is complete, neutral, and free of error is said to have this fundamental qualitative characteristic. (c) Public accountants perform audits to determine this enhancing qualitative characteristic. (d) This quality requires that information cannot be selected to favour one position over another. This enhancing qualitative characteristic describes information that a reasonably informed user can interpret and comprehend. When information provides a basis for forecasting income for future periods, it is said to have this quality. (9) This enhancing qualitative characteristic requires that similar companies should apply the same accounting principles to similar events for successive accounting periods. (h) This quality results in information that has nothing important omitted. (i) This restriction requires that the value of the information presented should be greater than the cost of providing it. (i) This quality describes information that confirms or corrects users' prior expectations. (k) This enhancing qualitative characteristic requires that information be available to decision makers before it loses its ability to influence their decisions. (1) Faithful representation means that information is complete, neutral, and this third quality. (m) This quality allows items of insignificance that would not likely influence a decision not to be disclosed. Comparability Understandability Faithful representation Completeness Cost constraint Freedom from error or bias Materiality Confirmatory value Timeliness Relevance Verifiability Neutrality Predictive value