Question

Identify which qualitative characteristic of accounting information is best described in each item below. (Do not use relevance and faithful representation.) (a) The annual reports of Best Buy Co. are audited by certified public accountants. select a characteristic (b) Black & Decker and Cannondale Corporation both use the FIFO cost flow assumption. select a characteristic (c) Starbucks Corporation has used straight-line depreciation since it began operations.

Answer 1

(a) The annual reports of Best Buy Co. are audited by certified public accountants - Verifiability

(b) Black & Decker and Cannon-dale Corporation both use the FIFO cost flow assumption - Comparability

(c) Starbucks Corporation has used straight-line depreciation since it began operations - Comparability (consistency)