According to the FASB Hierarchy of Qualitative Characteristics, the Two

question 58

Multiple Choice

According to the FASB hierarchy of qualitative characteristics, the two primary qualities making accounting information useful are

• A)understandability and decision usefulness
• B)relevance and reliability
• C)verifiability and neutrality
• D)predictive value and feedback value

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Definitions:

Liability

Legal responsibility for one's actions or omissions, which can result in an obligation to compensate for any resulting damages or losses.

Debt

an obligation, typically financial, owed by one party to another.

Retires

The act of leaving one's job and ceasing to work, typically due to reaching a certain age or for health reasons.

Liability on Debts

The legal responsibility to pay money owed to creditors, either by an individual or a company.