List A List B

$1.$ Predictive value Information is useful in predicting the future.

$2.$ Relevance Pertinent to the decision at hand.

$3.$ Timeliness Agreement between a measure and the phenomenon it purports to represent.

$4.$ Distribution to owners Decreases in equity resulting from transfers to owners.

$5.$ Confirmatory value Pertinent to the decision at hand.

$6.$ Understandability Requires consideration of the costs and value of information.

$7.$ Gain Increases in equity from peripheral or incidental transactions of an entity.

$8.$ Faithful representation Concerns the relative size of an item and its effect on decisions.

$9.$ Comprehensive income The process of admitting information into financial statements.

$10.$ Materiality Concerns the relative size of an item and its effect on decisions.

$11.$ Comparability Important for making interfirm comparisons.

$12.$ Neutrality The absence of bias.

$13.$ Recognition The process of admitting information into financial statements.

$14.$ Consistency Applying the same accounting practices over time.

$15.$ Cost effectiveness Requires consideration of the costs and value of information.

$16.$ Verifiability Information confirms expectations.