Chapter 1, Problem 29RQ

1.

To determine

Fundamental Qualitative Characteristics:

The fundamental qualitative characteristics states that the accounting information must be relevant and faithfully represent the position of company, so that it will be useful for better decision making to the external parties.

Relevance: The financial statement prepared should indicate the affirmatory value or supporting value.

To explain: The three aspects of relevance.

2.

To determine

Faithful representation: The information shared or shown in the financial statement should be fair and agree with the original facts.

To explain: The three aspects of faithful representation.