The following selected items relate to the qualitative characteristics of useful fi nancial information discussed in this chapter:
1. Comparability
2. Completeness
3. Confirmatory value
4. Cost constraint
5. Faithful representation
6. Freedom from error or bias
7. Materiality
8. Neutrality
9. Predictive value
10. Relevance
11. Timeliness
12. Understandability
13. Verifiability
Match each characteristic to one of the 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 reasonably free of error is said to have this fundamental qualitative characteristic.
(c) ________ This enhancing qualitative characteristic requires that similar companies should apply the same accounting principles to similar events for successive accounting periods.
(d) ________ This quality results in information that has nothing important omitted.
(e) ________ This constraint requires that the value of the information presented should be greater than the cost of providing it.
(f) ________ Public accountants perform audits to determine this enhancing qualitative characteristic.
(g) ________ This quality requires that information cannot be selected to favour one position over another.
(h) ________ This enhancing qualitative characteristic describes information that a reasonably informed user can interpret and comprehend.
(i) ________ When information provides a basis for forecasting profits for future periods, it is said to have this quality.
(j) ________ 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.
(l) ________ 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.