FA – May 2018 – L1 – SA – Q9 – Qualitative Characteristics of Useful Financial Information

Identifies the characteristic that is not considered an enhancing qualitative characteristic of useful financial information.

Question

Which of the following is NOT an enhancing qualitative characteristic of useful financial information?
A. Understandability
B. Relevance
C. Timeliness
D. Comparability
E. Verifiability

Answer

Explanation:
Option B is correct because relevance is a fundamental qualitative characteristic, not an enhancing one. The enhancing qualitative characteristics of financial information are understandability, comparability, verifiability, and timeliness. Relevance and faithful representation are the two fundamental qualitative characteristics.

Tags: Financial Information, Qualitative Characteristics
Level: Level 1

Topic: Qualitative Characteristics of Useful Financial Information
Series: MAY 2018

Uploader: Theophilus