Question
What is an enhancing quality in the second level of the conceptual framework for financial reporting?
Quality
Relevance
Reliability
Consistency
Quality
Relevance
Reliability
Consistency
Answers
GPT-4o mini
In the second level of the conceptual framework for financial reporting, the enhancing qualitative characteristics include **reliability** and **consistency**. Relevance is considered a fundamental qualitative characteristic.
So to clarify:
- **Relevance** is a fundamental quality, meaning it must be present for information to be useful.
- **Reliability** (often referred to as faithful representation) is an enhancing quality that helps increase the utility of the financial information.
- **Consistency** is also an enhancing quality, as it allows for the comparison of financial statements over time.
Therefore, in your options, the enhancing qualities would be **Reliability** and **Consistency**.
So to clarify:
- **Relevance** is a fundamental quality, meaning it must be present for information to be useful.
- **Reliability** (often referred to as faithful representation) is an enhancing quality that helps increase the utility of the financial information.
- **Consistency** is also an enhancing quality, as it allows for the comparison of financial statements over time.
Therefore, in your options, the enhancing qualities would be **Reliability** and **Consistency**.