Which of the following concepts (or principles)would most likely require that data be complete,neutral,and free from error?
A) Cost principle
B) Faithful representation principle
C) Entity concept
D) Going-concern concept

Question

Quizplus · Accepted Answer

The faithful representation principle requires that information be complete, neutral, and free from error in order to accurately represent the underlying economic events being reported. The cost principle refers to the initial valuation of assets and does not necessarily require completeness or neutrality of data. The entity concept refers to the separation of business and personal financial transactions, and the going-concern concept refers to the assumption that the business will continue to operate in the foreseeable future.

Which of the Following Concepts (Or Principles)would Most Likely Require