CFA Practice Question

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CFA Practice Question

The characteristics of an effective financial reporting framework do not include ______.

I. relevance
II. transparency
III. reliability
IV. comprehensiveness
V. consistency
A. II, IV and V
B. I and III
C. II and IV
Explanation: The three characteristics are transparency, comprehensiveness, and consistency.

User Contributed Comments 8

User Comment
BryanKec Effective financial reporting frameworks share three characteristics: transparency, comprehensiveness and consistency. Relevance and reliability are qualitative characteristics of financial statements (not framework). This is what the textbook says.
rana1970 Relevence, reliability, consistancy and comparability are 4 characteristics of accounting information.

the 3 characteristics (transparency, comprehensiveness and consistancy) mentioned here are for financial reporting framework.
mary11 doh' do not include - must read the question!
ldfrench So many "characteristics" to remember that all essentially say the same thing. BS.
leon121 I don't know why this question is considered DIFFICULT. All you have to do is memorize the effective characteristics of financial reporting: Trains Come Consistently and read the question carefully.
farhan92 Leon if you lived in london you would know that trains do not come consistently!
mvross The crux of financial reporting is providing transparency to stakeholders. Thus, you can remove A and C pretty quickly when trying to decide.
Fortschrit Thank you for the "trains come consistently" comment leon. In Switzerland and Singapore they do come consistently, in London they should!
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