Final answer:
The second level of FASB's conceptual framework consists of qualitative characteristics and elements of financial statements including relevance, faithful representation, and different elements of financial statements.
Step-by-step explanation:
The Financial Accounting Standards Board (FASB) conceptual framework's second level consists of qualitative characteristics and elements of financial statements.
The qualitative characteristics include relevance and faithful representation. Relevance means the information is capable of making a difference in decision-making, while faithful representation ensures the information is complete, neutral, and free from error.
The elements of financial statements include assets, liabilities, equity, income, expenses, gains, and losses.