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    major characteristics of accounting

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    Define some of the major characteristics of accounting. Why is accounting important to the non-accountant?

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    Key Characteristics of Accounting:

    Understandability

    This implies the expression, with clarity, of accounting information in such a way that it will be understandable to users - who are generally assumed to have a reasonable knowledge of business and economic activities

    Relevance

    This implies that, to be useful, accounting information must assist a user to form, confirm or maybe revise a view - usually in the context of making a decision (e.g. should I invest, should I lend money to this business? Should I work for this business?)

    Consistency

    This implies consistent treatment of similar items and application of accounting policies

    Comparability

    This implies the ability for users to be able to compare similar ...

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    Define some of the major characteristics of accounting? Why is accounting important to the non-accountant?

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