The following points highlight the three important users of accounting information. The users are: 1. Management 2. Users with Direct Financial Interest 3. Users with Indirect Financial Interest. User # 1. Management: Management is a group of people who are responsible for using the resources and managing the affairs of an entity to achieve the goals and objectives. Managers perform [...]
The following points highlight the top eleven characteristics of accounting information. The characteristics are: 1. Relevance 2. Reliability 3. Understandability 4. Comparability 5. Consistency 6. Neutrality 7. Materiality 8. Timeliness 9. Verifiability 10. Conservatism 11. Substance over Form. Characteristic # 1. Relevance: Relevance is closely and directly related to the concept of useful information. Relevance implies that all those items of [...]