Which qualitative characteristic of useful financial information is most relevant when a customer complains that paying her bills online is complicated?

• A. Understandability
• B. Verifiability
• C. Timeliness
• D. Comparability

Answer: (A)

Verified step by step guidance

1. Understand the concept of qualitative characteristics of useful financial information. These characteristics ensure that financial information is useful for decision-making.
2. Review the definition of 'Understandability': This characteristic means that financial information should be presented clearly and concisely so users can comprehend it without unnecessary complexity.
3. Analyze the scenario: A customer complains that paying bills online is complicated. This indicates that the process or information provided is not easy to understand.
4. Compare the options: 'Understandability' directly addresses the issue of complexity and clarity. 'Verifiability' relates to ensuring information is accurate and can be checked, 'Timeliness' refers to providing information promptly, and 'Comparability' ensures consistency across periods or entities.
5. Conclude that the most relevant qualitative characteristic in this scenario is 'Understandability,' as it focuses on making information accessible and easy to comprehend for users.