182k views
1 vote
The qualitative characteristic that says accounting information can influence users' decisions by allowing them to assess past performance is:____________.

User Decapo
by
8.1k points

1 Answer

1 vote

Answer:

Confirmatory Value

Step-by-step explanation:

Accounting information has both the primary and secondary qualitative values or characteristics. These actually determine the usefulness of accounting information per time.

The primary characteristics of accounting information are: relevance and representational faithfulness

The secondary characteristics are: timeliness, comparability, understand ability and verifiability.

Specifically, Relevance describes the usefulness of accounting information in making financial decisions and for accounting information to be relevant it must possess the following:

1. A confirmatory value - any quality of accounting information that allows decision makers or users to assess or make use of information from past events or financial performance has a confirmatory value.

2. A predictive value- this quality means accounting information gives users information to predict the possible future and make informed decisions.

User Therobinkim
by
7.9k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.