Asked by Ja'Lisa Hicks on Apr 24, 2024
Verified
The two qualitative characteristics that are defined in terms of what influences or makes a difference to a decision maker are
A) faithful representation and materiality.
B) comparability and timeliness.
C) materiality and relevance.
D) relevance and understandability.
Qualitative Characteristics
Attributes that enhance the usability of financial information, including relevance and faithful representation.
- Attain knowledge of the qualitative aspects that determine the effectiveness of financial information.
- Understand the difference between fundamental and enhancing qualitative characteristics.
Verified Answer
AS
Ayush Sinha7 days ago
Final Answer :
C
Explanation :
Materiality and relevance are the two qualitative characteristics defined in terms of what influences or makes a difference to a decision maker. Materiality refers to the importance of information in influencing decisions, while relevance pertains to the information's capacity to make a difference in decision-making.
Learning Objectives
- Attain knowledge of the qualitative aspects that determine the effectiveness of financial information.
- Understand the difference between fundamental and enhancing qualitative characteristics.
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