QUALITATIVE CHARACTERISTIC OF ACCOUNTING INFORMATION

Explanation

The qualitative characteristics of accounting data area unit as follows

Reliability: the primary qualitative characteristic of accounting data is dependableness. dependableness suggests that the users should be able to rely upon the data. it's believed that reliable data ought to be free from error and bias and dependably represents what it's meant to represent.

Relevance: The second qualitative characteristic of accounting data is connectedness. it's believed that a relevant data should be out there in time, should facilitate in prediction and feedback and should influence the choices of users during a positive manner.

Understandability: comprehensibility is that the third most significant qualitative characteristic of accounting data. comprehensibility suggests that decision-makers should interpret accounting data within the same sense because it is ready and sent to them. The qualities that distinguish between smart and dangerous communication during a message area unit elementary to the comprehensibility of the message. A message is alleged to be effectively communicated once it's taken by the receiver of the message within the same sense within which the sender has sent.



...