Asked by Dontillia
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
Answered by
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**.
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