BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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going concern and accrual accounting
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relevance and faithful representation
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materiality and cost benefits
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assets and liabilities
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Detailed explanation-1: -The two fundamental qualitative characteristics of financial reports are relevance and faithful representation. The four enhancing qualitative characteristics are comparability, verifiability, timeliness and understandability.
Detailed explanation-2: -To be a perfectly faithful representation, a depiction would have three characteristics. It would be complete, neutral and free from error.
Detailed explanation-3: -FASB (Financial Accounting Standards Board) lists six qualitative characteristics that determine the quality of financial information: Relevance, Faithful Representation, Comparability, Verifiability, Timeliness, and Understandability.
Detailed explanation-4: -The fundamental qualitative characteristics are relevance and faithful representation. Relevant financial information is capable of making a difference in the decisions made by users.
Detailed explanation-5: -Option (a)-Relevance and faithful representation are considered to be fundamental qualitative characteristics of accounting information.