Accounting Information Systems: Characteristic Of Useful Information

October 19th, 2006 Comments off
Share |

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?

CHARACTERISTIC OF USEFUL INFORMATION

Relevant

Information is relevant if it reduces uncertainty, improves decision makers ability to make predictions, or confirms or corrects their prior expectations.

Reliable

Information is reliable if it is free from error or bias and accurately represents the events or activities of an organization.

Complete

Information is complete if it does not omit important aspects of the underlying events or activities that it measures.

Timely

Information is timely if it is provided in time to enable decision makers to use it to make decisions.

Understandable

Information is understandable if it is presented in a useful and intelligible format.

Verifiable

Information is verifiable if two knowledgeable people acting independently would each produce the same information.

Comments are closed now.

Financial Accounting

 
 

Advertise Here | Brain Teasers/Puzzles | Greeting Cards | Inspirational Quotes | Jokes/Humor | Useful Links | Motivational Stories | Resource | Shopping | Share/Express Your Views | Testimonials | Universities/Colleges | Words of Wisdom from Religions | FREE POSTING OF ACCOUNTING & FINANCE JOBS VACANCY|