- CFA Exams
- CFA Exam: Level I 2021
- Study Session 6. Financial Reporting and Analysis (1)
- Reading 20. Financial Reporting Standards
- Subject 3. The International Financial Reporting Standards Framework
CFA Practice Question
According to the Framework for the Preparation and Presentation of Financial Statements, which of the following is not a qualitative characteristic of information in financial statements?
B. Reliability
C. Consistency
D. Understandability
A. Relevance
B. Reliability
C. Consistency
D. Understandability
Correct Answer: C
Another one is comparability.
User Contributed Comments 5
| User | Comment |
|---|---|
| cong | Qualitative characteristics include: understandaibliy, comparability, reliability, relevance. Effective financial reporting: transparency, consistency and comprehesiveness. |
| jpducros | Has someone a clever trick to remember all these items ? |
| pk84 | URRC |
| ColonelCFA | yoU aRe Really Cool |
| 2014 | As per text book two fundamental qualitative characterestics are Relevance and Faithful Representation. And four others are: comparability, verifiability, Timeliness and Understandability |