The following qualitative characteristics of accounting were discussed in the chapter:
• Consistency
• Relevance
• Understandability
• Comparability
• Conservatism
• Materiality
• Reliability
_________ 1. The ability of accounting information to be comprehensible to those who have a reasonable understanding of business and are willing to study the information with reasonable diligence.
_________ 2. The capacity to affect business decisions.
_________ 3. The dependability of accounting information.
_________ 4. The ability to compare and contrast the financial activities of the same company over a period of time.
_________ 5. The threshold over which an item begins to affect decision making.
_________ 6. The way in which accountants deal with uncertainty.
_________ 7. The ability to compare and contrast the financial activities of different companies.
Required
Fill in the blank with the appropriate characteristic.