What are the four characteristics that enhance the quality of financial information?
The four characteristics that can enhance the quality of financial information are comparability, verifiability, timeliness, and understandability.
1) Comparability: Comparability enables financial statement readers the ability to compare differences and similarities with the financial reporting entity.
2) Verifiability: Verifiability enables financial statement readers to verify the accuracy of the information being reported based on outside parties’ ability to reach the same conclusion.
3) Timeliness: Timeliness enables financial statement readers to obtain information in time to have the ability to reach their decisions.
4) Understandability: Understandability enables financial statement readers to have the ability to characterize and classify various components of the financial statements that are being presented.
You might also be interested in...
July 2021 Changes to The CPA Exam: Everything You Need to Know
Change is right around the corner! The talk of the (CPA) town is that changes are upon us and they are coming quickly. While this is not an overhaul in the way that CPA evolution will be in 2024, there are changes that are being made to all four sections (FAR, REG, AUD, and BEC) […]
2021 AICPA Released Questions
Buckle up and get ready to crush the CPA exam! The AICPA has released additional multiple choice questions for BEC, AUD, REG, and FAR. We’re beginning to incorporate the questions into the Universal CPA Review platform and we will be uploading videos for certain questions to each of the respective pages below. Creating a high […]
AICPA 2021 Released Questions for BEC
The moment we’ve all been waiting for! Additional question have been released by the AICPA for BEC! The topics are very random, so its a good way to test your understanding if you have been studying. If you haven’t been studying for BEC, it is a great way to see what you will be touching […]