Identify the qualitative characteristic of accounting information is best descri
ID: 2585048 • Letter: I
Question
Identify the qualitative characteristic of accounting information is best described in each item.
DO NOT USE relevance and faithful representation.
a. The annual reports of a company are audited by certified public accountants (CPAs).
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b. Two different companies both use the FIFO cost flow assumption.
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c. A company has used straight-line depreciation since it began operations 12 years ago.
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d. A publicly traded company issues its quarterly reports immediately after each quarter ends.
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Explanation / Answer
ANSWER
A. The annual reports of a company are audited by certified public accountants (CPAs).
- Verifiability
B. Two different companies both use the FIFO cost flow assumption.
- Comparability
C. A company has used straight-line depreciation since it began operations 12 years ago.
- Comparability (consistency)
D. A publicly traded company issues its quarterly reports immediately after each quarter ends.
- Timeliness