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Financial statements should be useful. Which of the following is not one of the qualities of useful financial representation.

A. Expandability Relevance
B. Faithful representation
C. Comparability
D. Consistency Verifiability

1 Answer

4 votes

Answer:

A. Expand-ability Relevance

Step-by-step explanation:

Financial statements does not need expansion, therefore expand-ability relevance is not one of the qualities of financial statements.

A. Faithful representation- financial statements must be a faithful representation of the state of the entity. it should represent the correct position of the entity.

B. Comparability - The financial statements must be prepared in accordance with acceptable standard to ensure comparison within and without the entity.

C. Consistency and Verifiability - The numbers must be verifiable and methods choosing in treating certain items must be consistent over time.

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