Which one of the following is not an enhancing quality of useful information
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Most organizations devote a fair amount of time and effort to considering their goals and objectives. The accounting profession is no different. Foremost among the objectives of accounting and reporting is to provide useful information for investors, creditors, analysts, governments, and others. Show MyExceLab Accounting information is general purpose and should be designed to serve the information needs of all types of interested parties. To be useful, information should be helpful in assessing an entity’s economic resources, claims against resources, and what causes changes in resources and claims. Such assessments are generally benefited by accrual accounting, coupled with consideration of cash flows. Care must be taken to differentiate between resource changes resulting from economic performance and other factors (e.g., earnings vs. issuing additional shares of stock). The following qualities help to make accounting useful. Fundamental QualitiesRelevancyInformation should be timely and bear on the decision-making process by possessing predictive or confirmatory (feedback) value.Faithful RepresentationInformation must be truthful; complete, neutral, and free from error.
Be aware of the growing complaint that accounting has become too complex. Many persons within and outside the profession protest the ever growing number of rules and their level of detail. The debate is generally couched under the heading “principles versus rules.” Advocates of a principles-based approach argue that general concepts should guide the judgment of individual accountants. Others argue that the world is quite complex, and accounting must necessarily be rules-based. They believe that reliance on individual judgment may lead to wide disparities in reports that could render meaningful comparisons impossible.
Did you learn?What are the key objectives of accounting?What fundamental qualities serve to make accounting useful?Discuss the enhancing qualities including comparability, consistency, verifiability, timeliness, and understandability.  Our sites
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A section of a page that consists of a composition that forms an independent part of a document, page, or site. An article is not a navigational landmark, but may be nested to form a discussion where assistive technologies could pay attention to article nesting to assist the user in following the discussion. An article could be a forum post, a magazine or newspaper article, a web log entry, a user-submitted comment, or any other independent item of content. It is independent in that its contents could stand alone, for example in syndication. However, the element is still associated with its ancestors; for instance, contact information that applies to a parent body element still covers the article as well. When nesting articles, the child articles represent content that is related to the content of the parent article. For instance, a web log entry on a site that accepts user-submitted comments could represent the comments as articles nested within the article for the web log entry. Author, heading, date, or other information associated with an article does not apply to nested articles. When the user navigates to an element assigned the role of When an Which of the following is an enhancing quality of useful accounting information?An enhancing quality of financial accounting information is comparability.
What are the enhancing qualities of useful information?The four enhancing qualitative characteristics are comparability, verifiability, timeliness and understandability. The characteristic of relevance implies that the information should have predictive and confirmatory value for users in making and evaluating economic decisions.
Which of the following is not an enhancing qualitative characteristics?Accuracy is not an enhancing qualitative characteristic. Faithful representation, not accuracy, is a fundamental qualitative characteristic.
What is a quality of useful information?Comparability, consistency, verifiability, timeliness, and understandability.
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