Accounting Information Systems: Characteristic Of Useful Information
In the earlier article, we understand that data is merely raw materials, it needs to be converted ( collected, processed, classified ,etc) into useful/meaningful facts so as to enable Management to made decisions.
So what are the criteria of being consider as USEFUL information?
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CHARACTERISTIC OF USEFUL INFORMATION |
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Relevant |
Information is relevant if it reduces uncertainty, improves decision makers ability to make predictions, or confirms or corrects their prior expectations. |
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Reliable |
Information is reliable if it is free from error or bias and accurately represents the events or activities of an organization. |
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Complete |
Information is complete if it does not omit important aspects of the underlying events or activities that it measures. |
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Timely |
Information is timely if it is provided in time to enable decision makers to use it to make decisions. |
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Understandable |
Information is understandable if it is presented in a useful and intelligible format. |
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Verifiable |
Information is verifiable if two knowledgeable people acting independently would each produce the same information. |
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