Association of Chartered Certified Accountants (ACCA) Certification Practice Test

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What is an essential quality of timely information?

It must be easy to understand
It must be available when needed for decision-making
It must always be comprehensive
It must be prepared by accountants

The correct answer is: It must be available when needed for decision-making

Timely information is crucial for effective decision-making, and its defining characteristic is that it must be available when needed. This means that information should be provided promptly so that decision-makers can utilize it to make informed choices within the necessary timeframe. If information is delayed, it may lose its relevance and effectiveness, rendering it less useful for timely decisions regarding operations, strategy, or finances. While the other options may be valuable characteristics of information—such as being easy to understand, comprehensive, or prepared by accountants—they do not specifically capture the essence of timing. For instance, information that is clear and comprehensive can still be detrimental if it arrives too late to influence a decision. Therefore, the timeliness of information is what enables stakeholders to act effectively based on the data at hand.