AICPA Exam CPA-Financial Topic 2 Question 2 Discussion

Actual exam question for AICPA's CPA-Financial exam

Question #: 2
Topic #: 2

According to the FASB conceptual framework, which of the following relates to both relevance and reliability?

AComparability.

BFeedback value.

CVerifiability.

DTimeliness.

Show Suggested Answer

Suggested Answer: A

Choice "a" is correct. Comparability and consistency are secondary qualities of both relevance and reliability. SFAC 2 para. 111-122

Choice "b" is incorrect. Feedback value is a key characteristic of relevance only.

Choice "c" is incorrect. Verifiability is a key characteristic of reliability only.

Choice "d" is incorrect. Timeliness is a key characteristic of relevance only.

by Lorrie at May 08, 2022, 06:52 AM

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