Which of the Following Are Qualitative Characteristics of Good Financial

question 12

Multiple Choice

Which of the following are qualitative characteristics of good financial reports for governments?

• A)Comparability among years, consistency among governments, completeness, and timeliness
• B)Comparability among governments, consistency between years, completeness, and timeliness
• C)Comparability with business, consistency between years, completeness, and timeliness
• D)Full disclosure, transparency, accuracy, and audit

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Definitions:

Return on Equity

A measure of financial performance calculated by dividing net income by shareholder's equity, indicating how well a company uses investments to generate earnings growth.

Quality of Income

A measure of how easily a firm's accounting income can be converted into cash, reflecting the company's financial stability.

Price/Earnings Ratio

A financial ratio that measures a company's share price relative to its earnings per share, indicating how much investors are willing to pay per dollar of earnings.