International accounting standards

Question 1

What are the 4 ways that the quality of information can be measured by?

Answer 1

Comparability
Relevance
Reliability
Understandability

Question 2

Define comparability

Answer 2

Can one compare with previous years or other businesses

Question 3

Define relevance

Answer 3

Information must be relevant to users

Question 4

Define reliability

Answer 4

Capable of being verified
Free from errors
Not bias

Question 5

Define understandability

Answer 5

Understood by all parties