Question

Name the qualitative characteristics and explain-Accounting information should be verifiable and free from
personal bias.

Answer 1

The demand for accounting information by investors, lenders, creditors, etc., creates fundamental qualitative characteristics that are desirable in accounting information. There are six qualitative characteristics of accounting information. Two of the six qualitative characteristics are fundamental (must have), while the remaining four qualitative characteristics are enhancing (nice to have).

Relevance refers to how helpful the information is for financial decision-making processes.qualitative characteristics definition. In accounting the qualitative characteristics include relevance, reliability, comparability, and consistency.