Answer: Understandability
Explanation: The financial statements must provide information that is understandable by the users. In other words, understandability means that the information to be read allows users to properly capture what is being communicated in these financial statements. There are several end users of the financial statements, for example, one of those users of the information contained in a set of financial statements may be someone who is not a qualified professional financier and therefore does not have full knowledge of the accounting and presentation requirements established for these reports.
