Question

What qualitative characteristics does accounting serve to achieve?

Answer 1

Relevance: information makes a difference in decision makingReliability: information is verifiable, factual, and neutralComparability: information can be used to compare different entitiesConsistency: information is consistently presented from year to year

Answer 2

The qualitative characteristics of accounting information are :-

♥ Reliability - It means the information is verifiable and free from material error .

♥ Understandability - It means the information provided must be presented in a manner that they can be understood .

♥ Comparability - The users must be able to compare the accounting information of the period with that of other periods .

♥ Relevance - It meets the need of the users in decision making .