Which Qualitative Characteristic of Financial Information Focuses on the Inclusion

question 8

Multiple Choice

Which qualitative characteristic of financial information focuses on the inclusion of relevant information?

• A) Faithful representation
• B) Materiality
• C) Comparability
• D) Cost constraint

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Definitions:

Sole Proprietorship

A type of business entity that is owned and run by one individual, where there is no legal distinction between the owner and the business.

Benefit Corporation

A type of for-profit corporate entity, recognized by certain US states, that includes positive impact on society, workers, the community, and the environment in addition to profit as its legally defined goals.

Profit

In the context of real property, the right to enter onto another’s property and remove something of value from that property.

Shareholder Benefit

The advantages or profits, such as dividends or increased stock value, that accrue to the owners of shares in a corporation.