When actual financial statements routinely report results that overstate or understate a company's financial position, which qualitative characteristic is violated?
A)Relevance.
B)Neutrality.
C)Conservatism.
D)Reliability.

Question

Quizplus · Accepted Answer

Neutrality is violated because financial statements should be unbiased and not intentionally overstate or understate a company's financial position.

When Actual Financial Statements Routinely Report Results That Overstate or Understate