Which of the following statement(s)is/are true of the qualitative characteristic 'faithful representation'?
A) information that is free from material bias and error
B) information that faithfully represents what it purports to represent
C) information that should affect the decisions of financial statement users
D) information that is free from material bias and error, complete description and that faithfully represents what it purports to represent

Question

Quizplus · Accepted Answer

Faithful representation requires information that is both free from material bias and error, and provides a complete description that faithfully represents what it purports to represent. This information should also be relevant and capable of influencing the decisions of financial statement users. Option A is incomplete as it only refers to one aspect of faithful representation, while option B and C describe relevant characteristics of financial information, but not specifically related to faithful representation.

Which of the Following Statement(s)is/are True of the Qualitative Characteristic