The Four Enhancing Qualitative Characteristics of Accounting Information Are

question 53

Multiple Choice

The four enhancing qualitative characteristics of accounting information are:

• A) comparability, verifiability, timeliness and understandability.
• B) consistency, timeliness, relevance and understandability.
• C) materiality, comparability, economic substance and verifiability.
• D) reliability, comparability, materiality, and timeliness.

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Definitions:

Asset Characteristics

The inherent properties and qualities of an asset that affect its value, performance, and risk profile.

MACRS Depreciation

The Modified Accelerated Cost Recovery System is a method of depreciation used for tax purposes in the United States, allowing for faster depreciation in the early years of an asset's life.

Deferred Tax Liability

A tax obligation that arises when taxable income and accounting income differ, to be paid in future periods when those differences reverse.

Effective Income Tax Rate

The average rate at which an individual's or corporation's pre-tax income is taxed, calculated by dividing the total tax expense by the taxable income.