The information must be comparable to the financial information presented for other accounting periods so that users can identify trends in the performance and financial position of the reporting entity. Identification and recording of transactions. Introduction To Accounting Class 11 Notes Accountancy Chapter 1 Accounting Classes Business Notes Accounting In some situations however it may be necessary to sacrifice some of one quality for a gain in another. . 350 would show up on the statement. The qualitative characteristics of accounting information are important because they make it easier for both company management and investors to utilize a companys financial statements to make well-informed decisions. A registrant has various classes of preferred stockDividends on those preferred stocks and accretions of their carrying amounts cause income applicable to common stock to be less than reported net income. Relevance req