Fundamental Qualitative Characteristics Include

question 81

Multiple Choice

Fundamental qualitative characteristics include

• A) relevance and comparability.
• B) representational faithfulness and timeliness.
• C) relevance and representational faithfulness.
• D) verifiability and relevance.

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Definitions:

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate period.

Fiscal Period

A specific time period used for accounting purposes and financial reporting, typically a year, broken into quarters or months.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Adjusting Entries

Journal entries made in accounting records at the end of an accounting period to update account balances before preparing financial statements.