For financial information to be useful, it should possess which of the following attributes?

Financial information is considered useful when it possesses certain attributes that enhance its effectiveness for decision-making purposes. One critical attribute is relevance, which ensures that the information is capable of influencing the decisions of users by helping them assess past, present, or future events. For example, relevant financial data can help stakeholders make informed predictions or assessments regarding a company's performance.

Reliability is another essential attribute, as it ensures that the information is credible and can be trusted. Reliable financial information provides a faithful representation of the economic events it purports to represent, free from error and bias. This reliability builds confidence among users, such as investors and creditors, who depend on the information to make sound financial decisions.

Comparability, the third attribute, allows users to evaluate financial statements of different entities and over time. This means that financial information should be presented in a way that enables users to make comparisons easily, facilitating better decision-making. When financial statements follow consistent accounting principles or standards, users can effectively compare performance across different periods or different organizations.

These three attributes together ensure that financial information serves its purpose effectively, making it suitable for analysis and enabling informed judgment by users.