Representational faithfulness includes
A) completeness, neutrality, and comparability.
B) neutrality, completeness, and understandability.
C) relevance, completeness, and freedom from material error.
D) neutrality, completeness, and freedom from material error.

Question

Quizplus · Accepted Answer

Representational faithfulness requires that financial information is free from material errors, is complete, and neutral. Relevance is also important, but is not included in the definition of representational faithfulness. Understandability is important for users of financial information, but is not necessarily a component of representational faithfulness.

Representational Faithfulness Includes