Question

Which of the following is not characteristic of accounting information?

• A. Understandability
• B. Relevance
• C. Future transactions
• D. Completeness

Answer 1

Answer: (C)

Future transactions

There are mainly 4 characteristics of the accounting information

1. Understandability: Information should be simple so, that users interpret it in the same sense.

2. Reliability: It means that information should be Verifiable, neutral and faithful.

3. Relevance: It includes timelines, Feedback value and dedicative.

4. Comparability: It includes that information should be of common period and use the common unit of measurement and format of reporting.