BE2−8 Identify characteristics of useful information.
The accompanying chart shows the qualitative characteristics of accounting information. Fill in the blanks.
BE2−9 Identify characteristics of useful information.
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.
Here are some qualitative characteristics of accounting information:
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.
The solution identifies characteristics of useful information for different situations. The useful accounting information is given.