The three criteria for fairness of presentation reporting suggest ________ reasoning for accounting.
A)compliance-based
B)principles-based
C)engagement-based
D)fairness-based

Question

Quizplus · Accepted Answer

The principles-based approach is aligned with the criteria for fairness of presentation reporting, which include relevance, representational faithfulness, and neutrality. This approach focuses on using accounting principles to report financial information accurately and transparently. Compliance-based and engagement-based approaches may not necessarily prioritize these criteria for fairness of presentation reporting. Fairness-based reasoning is also not specific enough to accounting principles and may not provide enough guidance on how to report financial information accurately.

The Three Criteria for Fairness of Presentation Reporting Suggest ________