Briefly explain the Characteristics of Accounting.

1.	Briefly explain the Characteristics of Accounting.
Answer» Accounting has the following 6 characteristics: Understandability: Accounting information is to be presented in such a way that it is understandable to the users. Relevance: Accounting information helps the user in decision making. The information so provided is relevant to that particular situation. Consistency: There should be consistency in the application of accounting policies adopted by a firm. Comparability: The accounting information provided by a firm must be comparable to that of similar firms over a period of time. Reliability: The accounting should provide the true and fair picture of the operations of a firm. Objectivity: An important feature of accounting is that it is not biased. And the accounting reports are neutral.

Answer»

Accounting has the following 6 characteristics:

Understandability: Accounting information is to be presented in such a way that it is understandable to the users.

Relevance: Accounting information helps the user in decision making. The information so provided is relevant to that particular situation.

Consistency: There should be consistency in the application of accounting policies adopted by a firm.

Comparability: The accounting information provided by a firm must be comparable to that of similar firms over a period of time.

Reliability: The accounting should provide the true and fair picture of the operations of a firm.

Objectivity: An important feature of accounting is that it is not biased. And the accounting reports are neutral.

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