Ginger Company Claims Its Financial Information Is Useful

question 205

Essay

Ginger Company claims its financial information is useful.What two qualities must be present in order to have "useful" accounting information? Explain these two qualities.

---

Definitions:

Dividends

Cash disbursements issued to shareholders by a company, commonly originating from the organization's earnings.

Total Assets

The sum of all resources owned or controlled by a company, valued in terms of money, which can be used to produce goods or services.

Investment Account

A financial account held at a bank or brokerage used to buy, sell, and hold securities like stocks, bonds, and mutual funds.

Consolidated Dividends

Dividends paid by a parent company that include those received from and paid out to its subsidiaries.