BE2-1 (L03) Match the qualitative characteristics below with the following statements. 1. Relevance 5. Comparability 2. Faithful representation 6. Completeness 3. Predictive value 7. Neutrality 4. Confirmatory value 8. Timeliness (a) Quality of information that permits users to identify similarities in and differences between two sets of economic phenomena. (b) Having information available to users before it loses its capacity to influence decisions. (c) Information about an economic phenomenon that has value as an input to the processes used by capital providers to form their own expectations about the future. (d) Information that is capable of making a difference in the decisions of users in their capacity as capital providers. (e) Absence of bias intended to attain a predetermined result or to induce a particular behavior.

The qualitativecharacteristicsare defined as the attributes that make financial information useful to the users. The users of the financial information can be shareholders, employees, investors, customers, and the government. The qualitative characteristics are comparability, relevance, predictive value, timeliness, and neutrality.

Relvance matches with (d). Relevance refers to the information that has thepower to affect the decision of the stockholders.

Comparability matches with (a). Comparability is the feature and quality of the information which allowsusers to determine the diiferences and simillaritiesbetween two pieces of economic information.

Timeliness matches with (b). Timeliness of the infomation is the feature which states that the information hasto be ready for decisionmaking purposes,and needs to be used before it losesits ability to change the economic decisions of the users.

Predictive value matches with (c). Predictive value is the estimation or economic input that is crucial forthe users and capital providers to determine future outcomes.

Neutrality matches with (e). Neutrality implies avoiding any type of bias to achieve a predetermined result.