Question

1. The following is a list of qualitative characteristics of useful accounting information identified in the FASB's and the IASB's Statement of Financial Accounting Concepts No. 8 and statements describing the qualities.

   A. Comparability

   B. Decision usefulness

   C. Relevance

   D. Faithful representation

   E. Predictive value

   F. Confirmatory value

   G. Verifiability

   H. Neutrality

   I. Free from error

   J. Consistency

   K. Materiality

   L. Timeliness

   M. Understandability

   N. Completeness

   Required:

   Select the appropriate letter identifying each quality on the statement describing the quality.

   1.	Different knowledgeable and independent observers can reach consensus that a particular representation is faithful.		A. Comparability B. Decision usefulness C. Relevance D. Faithful representation E. Predictive value F. Confirmatory value G. Verifiability H. Neutrality I. Free from error J. Consistency K. Materiality L. Timeliness M. Understandability N. Completeness
   2.	Making information available to decision makers before it loses its capacity to influence decisions.		A. Comparability B. Decision usefulness C. Relevance D. Faithful representation E. Predictive value F. Confirmatory value G. Verifiability H. Neutrality I. Free from error J. Consistency K. Materiality L. Timeliness M. Understandability N. Completeness
   3.	Capacity to make a difference in a decision, enabling users to predict future outcomes and/or confirm prior expectations.		A. Comparability B. Decision usefulness C. Relevance D. Faithful representation E. Predictive value F. Confirmatory value G. Verifiability H. Neutrality I. Free from error J. Consistency K. Materiality L. Timeliness M. Understandability N. Completeness
   4.	Overall objective of financial information.		A. Comparability B. Decision usefulness C. Relevance D. Faithful representation E. Predictive value F. Confirmatory value G. Verifiability H. Neutrality I. Free from error J. Consistency K. Materiality L. Timeliness M. Understandability N. Completeness
   5.	Absence of bias intended to influence financial statement users' behavior in a particular direction.		A. Comparability B. Decision usefulness C. Relevance D. Faithful representation E. Predictive value F. Confirmatory value G. Verifiability H. Neutrality I. Free from error J. Consistency K. Materiality L. Timeliness M. Understandability N. Completeness
   6.	Presented as accurately as possible, using a process that reflects the best available inputs.		A. Comparability B. Decision usefulness C. Relevance D. Faithful representation E. Predictive value F. Confirmatory value G. Verifiability H. Neutrality I. Free from error J. Consistency K. Materiality L. Timeliness M. Understandability N. Completeness
   7.	Helps decision makers form expectations about the future.		A. Comparability B. Decision usefulness C. Relevance D. Faithful representation E. Predictive value F. Confirmatory value G. Verifiability H. Neutrality I. Free from error J. Consistency K. Materiality L. Timeliness M. Understandability N. Completeness
   8.	Full disclosure of all the information necessary to understand the information being reported.		A. Comparability B. Decision usefulness C. Relevance D. Faithful representation E. Predictive value F. Confirmatory value G. Verifiability H. Neutrality I. Free from error J. Consistency K. Materiality L. Timeliness M. Understandability N. Completeness
   9.	Enables users to identify and explain similarities and differences between two or more sets of economic facts.		A. Comparability B. Decision usefulness C. Relevance D. Faithful representation E. Predictive value F. Confirmatory value G. Verifiability H. Neutrality I. Free from error J. Consistency K. Materiality L. Timeliness M. Understandability N. Completeness
   10.	The nature and magnitude of an omission or misstatement that would influence the judgment of reasonable users of that information.		A. Comparability B. Decision usefulness C. Relevance D. Faithful representation E. Predictive value F. Confirmatory value G. Verifiability H. Neutrality I. Free from error J. Consistency K. Materiality L. Timeliness M. Understandability N. Completeness
   11.	Accounting methods and procedures applied in the same manner from period to period.		A. Comparability B. Decision usefulness C. Relevance D. Faithful representation E. Predictive value F. Confirmatory value G. Verifiability H. Neutrality I. Free from error J. Consistency K. Materiality L. Timeliness M. Understandability N. Completeness
   12.	Helps decision makers confirm or correct prior predictions or expectations.		A. Comparability B. Decision usefulness C. Relevance D. Faithful representation E. Predictive value F. Confirmatory value G. Verifiability H. Neutrality I. Free from error J. Consistency K. Materiality L. Timeliness M. Understandability N. Completeness
   13.	When the words and amounts accurately depict the economic substance of what they purport to depict.		A. Comparability B. Decision usefulness C. Relevance D. Faithful representation E. Predictive value F. Confirmatory value G. Verifiability H. Neutrality I. Free from error J. Consistency K. Materiality L. Timeliness M. Understandability N. Completeness
   14.	Comprehensible to users.		A. Comparability B. Decision usefulness C. Relevance D. Faithful representation E. Predictive value F. Confirmatory value G. Verifiability H. Neutrality I. Free from error J. Consistency K. Materiality L. Timeliness M. Understandability N. Completen

Answer 1

No quality G. Verifiability L. Timeliness C. Relevance B. Decision usefulness Particulars 1 Different knowledgeable and independent observers can reach consensus that a particular representation is faithful. 2 Making information available to decision makers before it loses its capacity to influence decisions. Capacity to make a difference in a decision, enabling users to predict future outcomes and/or confirm prior expectations. 4 Overall objective of financial information. 5 Absence of bias intended to influence financial statement users' behavior in a particular direction. 6 Presented as accurately as possible, using a process that reflects the best available inputs. 7 Helps decision makers form expectations about the future. 8 Full disclosure of all the information necessary to understand the information being reported. 9 Enables users to identify and explain similarities and differences between two or more sets of economic facts. The nature and magnitude of an omission or misstatement that would influence the judgment of reasonable users of that information. 11 Accounting methods and procedures applied in the same manner from period to period. 12 Helps decision makers confirm or correct prior predictions or expectations 13 When the words and amounts accurately depict the economic substance of what they purport to depict. 14 Comprehensible to users. H. Neutrality 1. Free from error E. Predictive value N. Completeness A. Comparability 10 K. Materiality J. Consistency F. Confirmatory value D. Faithful representation M. Understandability