The Two Fundamental Qualitative Characteristics of Accounting Information Are

question 39

Multiple Choice

The two fundamental qualitative characteristics of accounting information are:

• A) relevance and reliability.
• B) relevance and faithful representation.
• C) reliability and consistency.
• D) faithful representation and comparability.

---

Definitions:

Financial Advantage

The benefit gained in financial terms, likely leading to improved profitability or reduced expenses.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating how much revenue is contributing to fixed expenses and profit.

Labor Hours

A measure of the amount of work or effort in terms of hours spent by workers in producing goods or providing services.

Profitable Use

The utilization of resources or assets in a way that generates a financial gain.