Accounting information must possess certain qualitative characteristic

1.	Accounting information must possess certain qualitative characteristics. What are they?
Answer» The following are the qualitative characteristic of accounting information. 1. Reliability: Accounting information will be reliable if it is free from error and faithfully represents what it seeks to represent. 2. Relevance: Information should be relevant and must be available in. time. 3. Understandability: Accounting information that is relevant must be capable of being understood by all its users. 4. Timeliness: Information must be available timely. If not, it loses its ability to influence decision. 5. Comparability: Accounting information should facilitate inter-firm comparison as well as interfirm comparison. Maximum Cputtishers

Accounting information must possess certain qualitative characteristics. What are they?

Answer»

The following are the qualitative characteristic of accounting information.

1. Reliability: Accounting information will be reliable if it is free from error and faithfully represents what it seeks to represent.

2. Relevance: Information should be relevant and must be available in. time.

3. Understandability: Accounting information that is relevant must be capable of being understood by all its users.

4. Timeliness: Information must be available timely. If not, it loses its ability to influence decision.

5. Comparability: Accounting information should facilitate inter-firm comparison as well as interfirm comparison.
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