Question $31$ options:

Accounting information provides useful information about business transactions and events. Those who provide and use financial reports must often select and evaluate accounting alternatives. The FASB statement on qualitative characteristics of accounting information examines the characteristics of accounting information that make it useful for decision$-$making. It also points out that various limitations inherent in the measurement and reporting process may necessitate trade$-$offs or sacrifices among the characteristics of useful information.

Fill in the blanks in the statements below with the following accounting principle, assumption, or related item that best completes the sentence. Make sure that you spell and type the phrases correctly.

Relevant

Faithful representation

Understandability

Comparability

Consistency

$\_\_\_\_\_\_\_$ is an enhancing quality of information.

$\_\_\_\_\_\_\_\_\_$ permits reasonably informed users to perceive its significance.

$\_\_\_\_\_\_\_\_\_$ means that information about companies has been prepared and presented in a similar manner.

$\_\_\_\_\_\_\_\_\_\_$enhances comparisons between information about two different companies at a particular point in time.

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ information is capable of making a difference in a decision.

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ information helps users to make predictions about the outcomes of past, present, and future events, or to confirm or correct prior expectations.

$\_\_\_\_\_\_\_\_\_\_$ is one of the two fundamental qualities of useful accounting information. Reliable information can be depended upon to represent the conditions and events that it is intended to represent.

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ assures completeness, neutrality, and free from error information.

$\_\_\_\_\_\_\_\_$ means that a company applies the same accounting treatment to similar events from one period to another.

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ enhances comparisons between information about the same company at two different points in time.