I was taught that information is useful data. The point is there are lots of data (plural of datum) everywhere, and most of the data will not be useful to a decision maker. Only after the data have been sorted and the relevant portions presented to a decision maker will the data become information.

While that is the distinction that I learned many years ago, I believe that most people use the terms information and data interchangeably. In other words, one person might say data processing and another might say information processing, and both could be referring to the same thing.

About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years.

He is the creator of the AccountingCoach Pro which has been praised for its ability to simplify accounting in a way that anybody can understand.

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