Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 2 - A Further Look at Financial Statements - Brief Exercises - Page 76: BE2-10

Answer

a) predictive value b) neutral c) verifiable d) timely

Work Step by Step

To be useful, data must allow the user to make reasonable predictions about the future of the company. Information must be neutral, not biased, to accurately represent the condition of the company. Information in financial reports must be verifiable, and, to be useful, must be available in time to assist in the decision making process.
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