ACCA Applied Knowledge · Financial Accounting · The context and purpose of financial statements for external reporting
Which of the following is an example of the enhancing qualitative characteristic of verifiability?
Verifiability is shown when different knowledgeable and independent observers could reach consensus that a particular depiction is a faithful representation. The other descriptions refer to timeliness, comparability and understandability, which are different enhancing characteristics.
- ATwo independent observers could reach the same conclusion that a depiction is faithfulCorrect
- BInformation is available to decision-makers in time to influence their decisions
- CUsers can identify similarities and differences between two entities
- DInformation is presented clearly and concisely
Explanation
Verifiability means independent, knowledgeable observers could agree that a depiction is faithfully represented. Option B is timeliness, C is comparability and D is understandability.
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