The Qualitative Qualitative Characteristics That Make Information in Financial Statements

question 9

Multiple Choice

The qualitative qualitative characteristics that make information in financial statements useful to investors identified within The Framework are:

• A) Relevance, faithful representation, timeliness and comparability
• B) Relevance and faithful representation
• C) Relevance, faithful representation, comparability, verifiability, timeliness and understandability
• D) Comparability, verifiability, timeliness and understandability

---

Definitions:

Assets

Economic resources owned or controlled by an individual, company, or entity, expected to provide future benefits.

Liabilities

Financial obligations or debts owed by a business to external parties or creditors.

Owner's Capital

The amount of money and other assets invested into a business by its owner or owners.

Owner's Drawings

Money removed by a sole proprietorship or partnership owner from the company for their private use.