Introduction to Accounting

period. A proper record of resources owned by business organisation (Assets) Qualitative Characteristics of Accounting Information Decision Makers (Users of Accounting Information) Understandability Decision Usefulness Relevance Relability Timliness Dedicative Feedback Verifiability Faithfulness Value Value Nutrality Comparability Fig. . : The qualitative characteristics of accounting information and claims against such resources (Liabilities) facilitates the preparation of a statement known as balance sheet position statement. Providing Accounting Information to its Users The accounting information generated by the accounting process is communicated in the form of reports, statements, graphs and charts to the users who need it in different decision situations. As already stated, there are two main user groups, viz. internal users , mainly management, who needs timely information on cost of sales, profitability, etc. for planning, controlling and decision-making and external users who have limited authority, ability and resources to obtain the necessary information and have to rely on financial statements (Balance Sheet, Profit and Loss account). Primarily, the external Investors and potential investors-information on the risks and return on investment;