Qualitative Characteristics

Question 1

Reliability

Answer 1

Accounting reports should contain information that is accurate, and free from bias

Question 2

Comparability

Answer 2

Accounting reports should be able to be compared over time

Question 3

Understandability

Answer 3

Accounting reports should be presented in a manner that makes it easy for them to be understood by the owner

Question 4

Relevance

Answer 4

Accounting reports should include all information that is useful for decision making