According to the Conceptual Framework for Financial Reporting to support the effective working of capital markets for the benefit of businesses, then financial statements must have which ONE of fundamental qualitative characteristics listed below?
Select ONE answer:
- Understandability
- Faithfulness of representation
- Comparability
- Timeliness
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 2
- Not correct
- Correct == > Faithfulness of representation is one of the fundamental characteristics that investors will be able to rely on them in making their decisions. Understandability, Timeliness and Verifiability are enhancing characteristics to this fundamental characteristic.
- Not correct
- Not correct
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