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17 February, 22:36

The chairman of the SEC at one time noted, "If it becomes accepted or expected that accounting principles are determined or modified in order to secure purposes other than economic measurement, we assume a grave risk that confidence in the credibility of our financial information system will be undermined." Which qualitative characteristic of accounting information should ensure that such a situation will not occur?

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  1. 18 February, 01:19
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    Neutrality.

    Explanation:

    The qualitative characteristics of accounting information have two fundamental qualitative characteristics:

    -Relevance: Requires financial information to be related to an economic decision.

    -Faithful Representation : Requires to represent what it purports to represent.

    • Completeness. Adequate or full disclosure of all necessary information.

    • Neutrality. Fairness and freedom from bias.

    • Free From error. No inaccuracies and omissions.
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