Qualitative Characteristics in Accounting

Relevance means financial information can influence the economic decisions of users.

Faithful representation requires information to be complete, neutral, and free from material error.

Financial information must always be perfect (zero errors) to be useful.

Comparability helps users identify similarities and differences in financial data.

Understandability means information should be so simple that no prior knowledge is needed.

Verifiability ensures different measurers would reach the same conclusion about the information.

Timeliness means information must be provided only at the end of the fiscal year.

The Economic Entity concept treats the business and its owner as separate entities.

The owner's personal assets should be included in the business's financial statements.

The Going Concern concept assumes the business will operate indefinitely.