The qualitative characteristics of accounting information are as follows:

1. Reliability : It means the accounting information must be reliable i.e., the users must be able to depend on the information. It must be factual and verifiable. A reliable information should be free from errors and bias.
   To ensure reliability, the information disclosed must be credible, verifiable by independent parties, must use the same method of measuring and be neutral and faithful.
2. Relevance : Accounting information presented by financial statements must be relevant to the decision making needs of the users. It means Unnecessary and irrelevant information should not be included. To be relevant, the information must be available on time, must help in prediction and feedback, and must influence the decisions of users.
3. Understandability : It implies that the information provided in the financial statements must be prepared in such a manner that it is understandable by the its users. Understandability implies that the accounting information provided to the decision-makers must be interpreted by them in the same sense as it was prepared and conveyed to them. This can be done by giving proper explanatory and working notes to explain the information.
4. Comparability : It means that the users should be able to compare the accounting information. To be comparable, accounting reports must belong to a common period and use common unit of measurement and format of reporting.
    

Raw materials and money in hand are called working capital.

The steps involved in the process of accounting are as follows:

1. Identifying the financial transactions.
2. Recording these transactions in the books of accounts.
3. Classifying the recorded entries in separate accounts.
4. Summarising the classified records.
5. Analysis and interpretation of financial statements.
6. Communicating the accounting information to the users

Quantitative analysis is a mathematical and statistical method of studying behavior and predicting outcomes that investors and management use in their decision-making process.

Inventory:

Inventory includes a small business’s finished products, as well as the raw materials used to make the products, the machinery used to produce the products and the building in which the products are made. In other words, anything that goes into producing the items sold by your business is part of its inventory.

Stock:

Stock is the finished product that is sold by the business. In some cases, stock is also raw materials, if the business also sells those products to its customers. For example, a car dealership’s stock includes cars, but also can include tires, engine parts or other car accessories.

Differences Between Inventory and Stock:

While stock deals with products that are sold as part of the business’s daily operation, inventory includes sale products and the goods and materials used to produce them. For example, the cars, car parts and accessories are sold during normal business practices, but the machines that run diagnostic tests on cars or the car lot itself are not. Inventory takes in account all of the assets a business uses to produce the goods it sells and determines the sale price for the stock. The stock determines the amount of revenue a business generates. The more stock that is sold, the higher the revenues.

Balance Sheet− It depicts the true financial positions of a business that provides required information like assets and liabilities of a business firm, to the users of accounting information like owners, creditors, investors, government, customers, shareholders etc.

General Terms : Those accounting terms that don't pertain to a particular financial statement.