QUESTION 1 The two fundamental qualities that make accounting information useful

Question

QUESTION 1

The two fundamental qualities that make accounting information useful for decision making are:

comparability and timeliness

faithful representation and comparability

relevance and faithful representation

materiality and neutrality

QUESTION 2

What is the objective of financial reporting?

Provide information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors.

Provide information that excludes claims to resources.

Provide information that clearly portrays non-financial transactions.

Provide information that is useful to management in making decisions.

comparability and timeliness

faithful representation and comparability

relevance and faithful representation

materiality and neutrality

Explanation / Answer

1)it is option C since the data present should be relevant in the point of view of external stakeholders and also they should have faith in the data presented otherwise they will not use it all for any analysis

2)It is option A since it is the definition it is self explanatory

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