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.
(b) black & decker and cannondale corporation both use the fifo cost flow assumption.
(c) starbucks corporation has used straightline depreciation since it began operations.
(d) motorola issues its quarterly reports immediately after each quarter ends.
(1) comparability
(2) verifiability
(3) timeliness
(4) comparability (consistency)

Statement (a) = (2) Verifiability

Statement (b) = (1) Comparability

Statement (c) = (4) Comparability (Consistency)

Statement (d) = (3) Timeliness

Explanation:

As for the provided information we have,

Statement (a) = (2) Verifiability

This characteristic refers to the information verified and confirmed to be accurate.

Statement (b) = (1) Comparability

The characteristic of an information which provides the similarity and differences between the two statements is comparability.

As here both the organisations use same cost flow assumption, it makes the data comparable.

Statement (c) = (4) Comparability (Consistency)

There is a consistency, that means use of same policy from a long time, and not changing it.

Here, the company is using straight line depreciation since its incorporation, and thus it is consistent with its policies.

Statement (d) = (3) Timeliness

Timeliness as the name suggest refers to the preparation of statements within the time relevant for preparing such statements.

As the quarterly statements are to be prepared in the quarter end resulting in benefit to the users of such reports, it is a timely information.

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