Final answer:
The second level bridge between Levels 1 and 3 in the conceptual framework used by the FASB comprises enhancing qualitative characteristics like comparability, verifiability, timeliness, and understandability, which aid in the utility of financial information.
Step-by-step explanation:
The second level that acts as a bridge between Levels 1 and 3 with respect to enhancing qualitative characteristics of accounting information in the context of financial reporting is likely referring to the conceptual framework used by organizations like the Financial Accounting Standards Board (FASB). Enhancing qualitative characteristics improve the usefulness of information that is relevant and faithfully represented. These characteristics include comparability, verifiability, timeliness, and understandability.
Comparability allows users to identify and understand similarities in and differences among items, whereas verifiability helps assure users that information faithfully represents what it purports to represent. Timeliness means having information available to decision-makers in time to be capable of influencing their decisions. Lastly, understandability means that information is classified, characterized, and presented clearly and concisely.
Materiality and neutrality are also important concepts in the context of financial reporting. Materiality refers to the importance of information and its capacity to influence decisions, and neutrality indicates the imperative to remain free from bias in financial reporting.