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      Question

      Which qualitative characteristic is MOST directly

      supported when different accountants, using the same data and assumptions, arrive at the same financial result?
      A Relevance Correct Answer Incorrect Answer
      B Timeliness Correct Answer Incorrect Answer
      C Verifiability Correct Answer Incorrect Answer
      D Understandability Correct Answer Incorrect Answer
      E Comparability Correct Answer Incorrect Answer

      Solution

      Verifiability means that independent accountants can reproduce the same results using identical data and assumptions.  There are six qualitative characteristics of accounting information: ● Relevance – how helpful the information is for financial decision-making processes ● Representational faithfulness or Reliability - the extent to which information accurately reflects a company’s financials ● Verifiability - the extent to which information is reproducible given the same data and assumptions ● Timeliness - how quickly information is available to users of accounting information ● Understandability - the degree to which information is easily understood ● Comparability - the degree to which accounting standards and policies are consistently applied from one period to another.

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