Please help me match the characteristic that more closely ad

12 out of 18 points closely addresses the situation presented. Some letters may not be used at all and some may be used more than once. Question Selected Match Understandability Should equipment leased on a long-term basis be reported as an asset (the economic substance of the transaction) or should it bea. Relevance reported as a rental (the form of the transaction)? c. Faithful d. Comparability d. Comparability A quality of information that enables an analyst to evaluate the financial performance of two different companies in the same industry decision.

Solution

Solution:

1) Faithful representation

2) Relevance

3) Verifiability

4) Comparability

5) Comparability

6) Faithful representation

Explanation:

Faithful representation – indicates that financial information should be complete, neutral and error free

Relevance - financial information is categorised relevant when is capable of influencing the users decisions

Verifiability - when information can be verified such as through an audit gives assurance to the users that it is both credible and reliable.

Comparability – the information must be possible to compare an entity over time and with same information about other entities