Under Statement of Financial Accounting Concepts No.8,which of the following is an ingredient of the primary quality of faithful representation?
A)Understandability
B)Verifiability
C)Predictive value
D)Materiality

Question

Quizplus · Accepted Answer

The primary qualities of faithful representation are completeness, neutrality, and verifiability. Out of these three, verifiability is the concept that ensures that different knowledgeable and independent observers would reach a consensus that a depiction is a faithful representation. Therefore, verifiability is an integral ingredient of the primary quality of faithful representation. Understandability and predictive value are enhancing qualities, and Materiality is a constraint.