Which is NOT necessary to ensure that faithful representation is achieved?
A) Accounting information is reported on cash basis.
B) Accounting information is free from material error.
C) Accounting information is complete.
D) Accounting information is neutral.

Question

Quizplus · Accepted Answer

Faithful representation, as a qualitative characteristic of financial information, requires that the information be complete, neutral, and free from material error. Reporting on a cash basis, while a legitimate accounting method, is not a requirement for achieving faithful representation. Faithful representation focuses more on the accuracy, completeness, and impartiality of the information rather than the specific accounting method used.

Which Is NOT Necessary to Ensure That Faithful Representation Is