Qualitative characteristics of accounting information

-Harsha Lal- ACW Accounts at Edumarz

Ans- These characteristics make financial information useful to the users. These are:-

1. Reliability:- Accounting information must be free from errors and personal bias.

2. Relevance:- Accounting information should be relevant to the decision- making requirements of the users.

3. Understandability:- Accounting information should be such that it is understood by its users.

4. Comparability:-It should be comparable both intra- and inter- firms over different time periods.