Question

Which of the following is an incorrect pairing of an enhancing characteristic and its definition?

1) Understandability - accounting information should be comprehensible to users who have a reasonable knowledge of business and economic activities and who are willing to study the information carefully.
2) Verifiability - different knowledgeable and independent observers can reach consensus that a particular representation is faithful.
3) Timely - information is available to decision makers when they make their decisions.
4) Comparability - accounting methods and procedures are applied in the same manner from period to period

Answer 1

Number 4) Comparability - accounting methods and procedures are applied in the same manner from period to period is the incorrect pairing in this question.

Step-by-step explanation:

The incorrect pairing in this question is number 4) Comparability - accounting methods and procedures are applied in the same manner from period to period. Comparability actually refers to the ability to compare similar information from different periods or different companies. It does not mean that the accounting methods and procedures are applied in the same manner.

Understandability, verifiability, and timely are all correct pairings that accurately reflect their definitions. Understandability means that the accounting information should be comprehensible to users who have a reasonable knowledge of business and economic activities and who are willing to study the information carefully. Verifiability means that different knowledgeable and independent observers can reach consensus that a particular representation is faithful. And timely means that the information is available to decision-makers when they make their decisions.