Question

Each of the following statements is justified by a fundamental quality or an enhancing of quality accounting. Match the letter next to each statement corresponding to the quality involved.

a. Comparability
b. Understandability
c. Verifiable
d. Consistency
e. Relevance
f. Faithful representation

a. A company uses the same accounting principles from year to year.
b. Information that can be reproduced by independent observers.
c. Information presented in a clear and concise fashion.
d. Information that makes a difference in a decision.
e. Information accurately depicts what really happened.

Answer 1

Answer and Explanation:

The matching of the letter with the statement is as follows

a. Consistency: The company that use the same accounting principal from year to year is known as consistency

b. Verifiable:  The information could be regenerated by an independent observers.

c. Understandability: The information that presented in a clear and concise.

d. Relevance;  that shows a difference in a decision

e. Faithful representation: It represent the correct information that really happened