What is the purpose of producing accounting information?

The primary purpose of accounting information is to provide useful information to help people make decisions.

Stakeholders of a company are interested in the financial performance of that company, and therefore require accounting information in order to assess the company's well-being.

In order for accounting information to be useful, it must be:

• Understandable
• Relevant/Timely
• Reliable/Verifiable
• Comparable