Which characteristic ensures that information can be verified and validated?

The correct answer is verifiability, which is a key characteristic in accounting and financial reporting that indicates the information presented can be substantiated by evidence or corroborated through various means. When information is verifiable, it allows third parties to confirm that the information accurately reflects the underlying transactions or events, ensuring reliability and trustworthiness.

Verifiability is essential for users of financial statements, such as investors and creditors, who rely on the accuracy of reported figures to make informed decisions. This characteristic is supported by practices such as audits and thorough documentation, which reinforce the credibility of financial information.

On the other hand, consistency focuses on the consistent application of accounting methods over time, which helps in analyzing trends but does not directly speak to the ability to validate information. Understandability deals with the clarity and accessibility of information to users, making it easy to comprehend but not necessarily confirming its accuracy. Comparability allows users to compare financial statements across different entities or time periods but does not inherently ensure that the individual pieces of information can be validated.