Monday 21 October 2013

What are the qualities of accounting information?

Qualitative characteristics of accounting information

 There are four (4) qualitative characteristics of accounting information that serve as the basis for decision making purposes in accounting:

  • Relevance: information makes a difference in decision making
  • Reliability: information is verifiable, factual, and neutral
  • Comparability: information can be used to compare different entities
  • Consistency: information is consistently presented from year to year
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1 comment:

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