A.
Qualitative characteristics are standards for judging the information that accountants give to decision makers. Accountants try to provide information that is understandable and useful. Understandable means that the user is able to interpret the information. Usefulness depends on the characteristics of relevance and reliability. Relevance requires that the information give feedback, help make predictions, and be timely. Reliability requires that the information represent what it is supposed to represent, and be credible, verifiable, and neutral.