Question

Which of the following is not a qualitative characteristic of accounting information?
(a) Reliability
(b) Understand ability

(c) Comparability
(d) Materiality.​

Answer 1

Answer:

Reliability is answer

Answer 2

Answer:

The correct answer is option (d) Materiality

Explanation:

Qualitative Characteristics-

• Relevance-The relevance of information refers to how useful it is for financial decision-making processes.
• Trustworthiness in Representation-The extent to which information accurately reflects a company's resources, obligatory claims, transactions, and so on is referred to as representational faithfulness.
• Verifiability-The degree to which information is reproducible given the same data and assumptions is referred to as verifiability.
• Timeliness- Timeliness refers to how quickly accounting information is made available to users.
• Understandability-The degree to which information is easily understood is referred to as understandability.
• Comparability-Comparability refers to the degree to which accounting standards and policies are consistently applied from one period to the next.

Hence, we can conclude that Materiality is not a qualitative characteristic of accounting information.

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