Alpha Co. reports inventory on its balance sheet using the same generally accepted methods as applied by Beta Co. These facts relate most closely to which of the following qualitative characteristics of financial reporting?   Verifiability Understandability Materiality

What are the qualitative characteristics of financial statements according to the Framework? Qualitative characteristics are broad classes of financial effects of transactions and other events Qualitative characteristics are the attributes that make the information provided in financial statements useful to others. Qualitative characteristics measure the extent to which an entity has complied with all relevant Standards and Interpretations. Qualitative characteristics are non-quantitative aspects of an entity’s position and performance and changes in financial position

Which of the following is an assumption made in the preparation of the financial statements? Select one: a. The current market value is assumed to be less relevant than the original cost paid. b. Financial statements are prepared for a specific entity that is distinct from the entity's owners. c. The preparation of financial statements for a specific time period assumes that the balance sheet covers a designated period of time. d. Financial statements are prepared assuming that inflation

Which of the following sets includes only accounting assumptions and conventions? a. timeliness, prudence, historical cost, and neutrality b. matching, comparability, period of timem and reliability c. monetary unit, going concern, relevance, and materiality d. monetary unit, entity, going concern, and realization-recognition