What two characteristics must accounting information have to be useful? Explain.
two characteristics must accounting information have to be useful are
( 1) Relevant
Accounting information is useful for decision making, when such information are relevant and reliable. In general one can say that, useful information will possess both qualities.
Suppose we take example of net income & its components .this informqation should relevant and reliable because it has the feedback value to investors and investor can calculate expectations about future cash generating ability of the company