Which of the following is not a characteristic of financial accounting information?

1.Which of the following is NOT a characteristic that makes information useful?a.It is reliable.b.It is timely.c.It is inexpensive.d.It is relevant.

2.Which cycle includes interactions between an organisation and its suppliers?

3.What report expresses goals in financial terms?

4.All of the information about a particular student (name, major, course etc) is stored in whichof the following?

5.Data differs from information in which way?a.Data are output and information is input.b.Information is output and data is input.c.Data are meaningful bits of information.d.They are the same.

6.The application of electronic networks to undertake business processes between individuals andorganizations is called:

Accounting Systems – Revision Package for Mid-semester TestSolutions8.The accounting information system (AIS) has as its purpose to collect, process, and reportinformation related to:

9.Master data contain data related to:a.Journals.b.Transactions.c.Entities.d.Events.

10.The relatively permanent data stored in master data are called:

11.An example of a ___________ is a customer’s address that is stored in an accounts receivablemaster data.

12.When we computerize an accounting information system (AIS), we change:

The following are all qualitative characteristics of financial statements.

Understandability

The information must be readily understandable to users of the financial statements. This means that information must be clearly presented, with additional information supplied in the supporting footnotes as needed to assist in clarification.

Relevance

The information must be relevant to the needs of the users, which is the case when the information influences their economic decisions. This may involve reporting particularly relevant information, or information whose omission or misstatement could influence the economic decisions of users.

Reliability

The information must be free of material error and bias, and not misleading. Thus, the information should faithfully represent transactions and other events, reflect the underlying substance of events, and prudently represent estimates and uncertainties through proper disclosure.

Comparability

The information must be comparable to the financial information presented for other accounting periods, so that users can identify trends in the performance and financial position of the reporting entity.

The correct answer is Option B.

Option B- Feedback Value is the response received from the users after analyzing the useful information. The information does not depend on the value of the feedback it receives because the different users have different feedback. Thus, the consideration of the importance of the information can not depend on the feedback.

An explanation of the incorrect options-

Option A- The useful information has the characteristic of being easy to understand. The information should be easily readable and understandable by its users, which further helps in the decision-making process.

Option C- The useful information should be presented on a timely basis so that users can make the right decisions at the right time. Information that is related to the extreme past and has relevance in the future holds no value.

Option D- The useful information should be representational faithfulness because accurate information helps in decision-making. The user is able to draw valid decisions, which help in the overall growth of the business. 

Which of the following is not characteristic of accounting information?

Which of the following is a characteristic of financial accounting information?

What are the 5 characteristics of accounting information?

What are the characteristics of financial accounting?