Question

In: Accounting

In your opinion, which of the seven characteristics of useful information is the most important? Explain.

In your opinion, which of the seven characteristics of useful information is the most important? Explain.

Solutions

Expert Solution

The seven characteristics of useful information are: relevant, reliable, complete, timely, understandable, verifiable and accessible

1. Relevant

2. Reliable

3. Complete

4. Timely

5. Understandable

6. Verifiable

7. Accessible

In my opinion, the most important characteristics of useful information is Relevant as because whole premise of useful information is based on decision making and unless information is relevant then it is not useful.

Information should be relevant to the purpose for which it is required. It must be suitable. What is relevant for one manager may not be relevant for another. The user will become frustrated if information contains data irrelevant to the task in hand.

For example, a market research company may give information on users’ perceptions of the quality of a product. This is not relevant for the manager who wants to know opinions on relative prices of the product and its rivals. The information gained would not be relevant to the purpose.


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