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Identifying Characteristics of Useful Information

BE2−8 Identify characteristics of useful information.
(SO 7)
The accompanying chart shows the qualitative characteristics of accounting information. Fill in the blanks.

BE2−9 Identify characteristics of useful information.
(SO 7)
Given the characteristics of useful accounting information, complete each of the following statements.
For information to be _____, it should have predictive or feedback value, and it must be presented on a timely basis.
_____ is the quality of information that gives assurance that it is free of error and bias; it can be depended on.
_____ means using the same accounting principles and methods from year to year within a company.

BE2−10 Identify characteristics of useful information.
(SO 7)
Here are some qualitative characteristics of accounting information:
Predictive value
Match each qualitative characteristic to one of the following statements.
_____ (a) Accounting information should help users make predictions about the outcome of past, present, and future events.
_____ (b) Accounting information cannot be selected, prepared, or presented to favor one set of interested users over another.
_____ (c) Accounting information must be proved to be free of error.
_____ (d) Accounting information must be available to decision makers before it loses its capacity to influence their decisions.

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Solution Summary

The solution identifies characteristics of useful information for different situations. The useful accounting information is given.