Question

Two fundamental qualities that make accounting information useful for decision making purposes-----------------

Answer 1

The two fundamental qualities that make accounting information useful for decision making purposes are adaptability and interpretability.

Step-by-step explanation:

The two fundamental qualities that make accounting information useful for decision making purposes are adaptability and interpretability.

Adaptability refers to the ability of accounting information to be modified or adjusted to meet the specific needs of users. It should be able to capture and represent various aspects of financial transactions and events in a manner that is relevant and meaningful for decision making.

Interpretability, on the other hand, refers to the ease with which accounting information can be understood and analyzed by users. It should be presented in a clear and concise manner, using standardized formats and terminology that are widely recognized and accepted.

For example, financial statements such as the balance sheet and income statement provide accounting information that can be adapted to different business contexts and easily understood by stakeholders to inform their decision making processes.