Identify Which Qualitative Characteristic of Financial Reports Is Best Described

question 27

Multiple Choice

Identify which qualitative characteristic of financial reports is best described in each item below:
The financial reports of Curl Curl Ltd are audited by a chartered accountant.
Curl Curl Ltd and Bondi Ltd both use fair value accounting to recognise financial instruments.
Curl Curl Ltd authorises issue of its financial reports prior to the shareholders' meeting.

• A)relevance,comparability,timeliness.
• B)reliability,consistency,understandability.
• C)reliability,comparability,timeliness.
• D)relevance,understandability,comparability.
• E)None of the given answers.

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Definitions:

Total Cost

The sum of all costs incurred by a business in producing a certain amount of a good or service, including both fixed and variable costs.

Additional Unit

Refers to the next unit of product or service that is considered in the production or consumption decision-making process.

Marginal Benefit

The extra advantage gained by using an additional unit of a product or service.

Producing

The act or process of creating goods or services by combining labor, materials, and technology.