CFAS Study Guide: Qualitative Characteristics of Financial Information

CFAS Study Guide: Qualitative Characteristics of Financial
Information

Qualitative Characteristics - correct answer ✔✔qualities or attributes that make financial accounting
information useful to the users



Relevance - correct answer ✔✔the capacity of the information to influence a decision



Materiality - correct answer ✔✔a practical rule in accounting which dictates the strict adherence to
GAAP is not required when the items are not significant enough to affect the evaluation, decision and
fairness of the financial statements



Materiality - correct answer ✔✔also known as doctrine of convenience



relative size - correct answer ✔✔san nagdedepend ung materiality? relative size or absolute size?



1. Relevance

2. Materiality

3. Faithful representation

4. Prudence

5. Conservatism

6. Substance over form - correct answer ✔✔what are the qualitative characteristics?



1. Comparability

2. Undestandability

3. Verifiability

4. Timeliness - correct answer ✔✔ano dinagdag in QUALITATIVE CHARACTERISTICS



Faithful representation - correct answer ✔✔means that the actual effects of the transactions shall be
properly accounted for and reported in the financial statements