QUALITATIVE CHARACTERISTICS OF ACCOUNTING INFORMATION & ACCOUNTING Accounting Business CHARACTERISTICS Comparability Comparable Consistency Consistent Cost Financial For INFORMATION Incorrect Informat
QUALITATIVE CHARACTERISTICS OF ACCOUNTING INFORMATION & ACCOUNTING Accounting Business CHARACTERISTICS Comparability Comparable Consistency Consistent Cost Financial For INFORMATION Incorrect Informat
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QUALITATIVE CHARACTERISTICS OF ACCOUNTING INFORMATION
Business owners can use accounting information to conduct a financial analysis of their companies & risqué; operations. Accounting information often has quantitative and qualitative characteristics. Quantitative characteristics refer to the calculation of financial transactions. Qualitative characteristics include the business owner & rsquo;s perceived importance of financial information. Business owners often require financial information when making business decisions. Incorrect or inappropriate information can hamper decision-making or cause business owners to make incorrect assessments about their companies. Understandable
Accounting information must be understandable. This is an important qualitative characteristic for small business owners. Many small business owners do not have a strong accounting background.