Question

Which of the following criterion are required to be fulfilled by every accounting report?

• A. Reliability, Timeliness, Accuracy, Completeness, Summarisation
• B. Relevance, Timeliness, Accuracy, Completeness, Summarisation
• C. Relevance, Timeliness, Accountability, Completeness, Summarisation
• D. Reliability, Timeliness, Accountability, Completeness, Summarisation

Answer 1

The correct option is B Relevance, Timeliness, Accuracy, Completeness, Summarisation

When the related information is summarized to meet a particular need, it is called as a report. The content and design of the reports is expected to vary depending up on the level to which it is submitted and decision to made on the basis of the report. Hence, a report must be effective and efficient to the user and should substantiate the decision-making process. Every accounting report must be able to fulfill the following criterion:
1) Relevance
2) Timeliness
3) Accuracy
4) Completeness
5) Summarisation