Financial Accounting

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Book-keeping, Accounting & Accountancy

Here is the detailed explanation of Book-keeping, Accounting & Accountancy:

  • Predictive value: Predictive value refers to the ability of information to help users make predictions or forecasts about future events.
  • Feedback value: Feedback value is the ability of information to provide feedback on past decisions and outcomes.
  • Timeliness: Timeliness emphasizes the importance of providing information in a timely manner. Relevant information loses its value if it is not available when needed.
  • Verifiability: Accounting information is verifiable when it is free from error.
  • Representational faithfulness: Representational faithfulness refers to the degree to which the financial information faithfully represents the economic transactions and events it purports to represent.
  • Neutrality: Neutrality is the characteristic that requires financial information to be free from bias, ensuring that it is not influenced by any subjective interests or preferences.

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