What are the elements (characteristics, principles, constraints, and assumptions) of the accounting environment? How do they affect the financial statements? Why are these elements important? How do they affect comparability between companies?© BrainMass Inc. brainmass.com March 4, 2021, 9:08 pm ad1c9bdddf
Elements of the accounting environment:
Characteristics: The accounting alternative selected should be one that generates the most useful financial information for decision making.
To be useful, information should possess the following qualitative characteristics:
4. comparability and consistency
Principles: Principles indicate how transactions and other economic events should be recorded. Some of the accounting principles include historical cost principle, ...
What are the elements (characteristics, principles, constraints, and assumptions) of the accounting environment?