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) Completeness
C) Predictive value
D) Materiality

Question

Quizplus · Accepted Answer

According to Statement of Financial Accounting Concepts No. 8, completeness is an ingredient of the primary quality of faithful representation. Completeness means that all necessary information is provided and nothing important has been omitted. Understandability, predictive value, and materiality are also components of faithful representation, but completeness is specifically mentioned as an ingredient of the primary quality.