Which of the following is the fundamental qualitative characteristic of financial statements

Which of the following is the fundamental qualitative characteristic of financial statements

Which of the following is the fundamental qualitative characteristic of financial statements under Australian Accounting Standards?

A. Timeliness

B. Relevance

C. Understandability

D. Comparability

Answer: B

Explanation: The two fundamental qualitative characteristics are relevance and faithful representation. Timeliness, understandability and comparability are enhancing qualitative characteristics.