Question
Complete the definitions below by filling in the selecting the the correct choice from the drop-down list: square is an enhancing quality of accounting information that provides assurance to users that the information provided faithfully represents what it is supposed to represent and can be verified directly or indirectly by independent observers. square square is an enhancing quality of accounting information that helps users to make comparisons by treating items that are basically the same, in the same way, and by making accounting policies clear. This is aided by accounting
Answer
4.1
(229 Votes)
Amber
Master · Tutor for 5 years
Answer
1. Verifiability 2. Comparability
Explanation
## Step1: Look at the first blank. The definition surrounded gives detailed characterization on that quality, forcing on its enhancing role for accounting information, on its ability to provide reliable, faith representation of financial affairs that could be verified directly or indirectly from independent overseers.## Step2: This quality among all elements that form GAAP (Generally Accepted Accounting Principles) in accounting, is notably known as 'Verifiability'. Verifiability reinforces that accounting information must be based on the highest factual content possible, easily provable from source documents, like invoices, transcripts, receipts and can be checked to guarantee nothing stands misrepresented or fraudulent.## Step3: To fill in the second blank, the given description signifies the enhancing parsing ability for users. This quality assists users to ensure analogous treatment to accounting items through comprehensible policies path, expedited by following accounting standards for continual reliability in process, known as 'Comparability'.## Step4: Comparability spelunk both synchronic (comparative analysis with other firms during the same frame) and diachronic (historical analysis of the firm during different timeframes) comparison, requiring a firm to stick rightly to a consistent application of accounting rules, presenting faithful comparable standings across scale. It accentuates easy digestible similarities and differences in financial information.