Explain the quantitative characteristics of accounting infrastructure
Answers
The qualitative characteristics of accounting process are:
1. Relevance- the information presented should be useful to the users of financial information.
2. Reliability- The information should be obtained from reliable source. That, financial statements must show faithful information.
3. Understandability- Information must be presented in a manner that situation could be understandable.
4. Comparability - User must be able to compare the information with peer companies and past year.
5. Consistency - There is no frequent change in accounting assumption unless required by law or for better representation.
6. Neutrality - There should be no window dressing in the information provided to users.
7. Materiality - All the important information should be disclosed to the users.
8. Timeliness - All the information should be presented in timely manner.
9. Verifiability- Information should be consistent when obtained from different sources.