CBSE/NCERT Class 11 Accounts Chap-1, Qualitative Characteristics of Accounting Information, Lect-4

Chapter 1 of Class 11Accounts. Topic- Qualitative Characteristics of Accounting Information. Qualitative characteristics are the attributes of accounting information which tend to enhance its understandability and usefulness. In order to assess whether accounting information is decision-useful, it must possess the characteristics of reliability, relevance, understandability and comparability. Reliability Reliability means the users must be able to depend on the information. The reliability of accounting information is determined by the degree of correspondence between what the information conveys about the transactions or events that have occurred, measured and displayed. Reliable information should be free from error and bias and faithfully represents what it is meant to represent. To ensure reliability, the information disclosed must be credible, verifiable by independent parties use the same method of measuring, and be neutral and faithful #accounts #class11