Qualities of Useful Accounting Information
Response to the following problem:
A friend of yours, who is not an accounting major, is concerned about the "usefulness" of accounting information. The friend states: "I have watched you prepare many financial statements in completing your homework assignments.
But how do you determine whether the information in these financial statements is useful? What are the characteristics or qualities of useful accounting information?"
Required
Prepare a written response for your friend that identifies and explains the qualitative characteristics of useful accounting information.