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Introduction to Booking Keeping and Accounting | Week 111 Topics1 Quiz
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Introduction to Books of Accounts | Week 26 Topics1 Quiz
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Subsidiary Books of Account I | Week 34 Topics1 Quiz
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Subsidiary Books of Account II | Week 44 Topics1 Quiz
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Principles of Double Entry Bookkeeping | Week 52 Topics1 Quiz
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Cash Book | Week 66 Topics1 Quiz
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Petty Cash Book | Week 71 Topic1 Quiz
Topic Content:
- Qualities/Characteristics of Accounting Information
- Limitations of Accounting
Qualities/Characteristics of Accounting Information:
The primary objective of financial reporting is to provide useful information for making business decisions. A piece of good accounting information must have the following qualities in order to satisfy the user’s needs:
1. Reliable: Reliable information should be free from error and bias and faithfully represent what it is meant to represent.
2. Verifiable: If independent observers, using the same methods, obtain similar results, then the information is verifiable
3. Timeliness: For accounting information to be relevant, it must be timely, i.e. it must be available to the decision-makers before it loses its capacity to appropriately inform decisions.
4. Relevance: Accounting
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