Counting the actual physical inventory of a company and comparing it to accounting records would be an example of the:
A) faithful representation principle.
B) entity concept.
C) going-concern concept.
D) stable monetary unit concept.

Question

Quizplus · Accepted Answer

Counting physical inventory and comparing it to accounting records is an example of the faithful representation principle, which requires that financial information accurately represents the transactions and events it purports to represent.

Counting the Actual Physical Inventory of a Company and Comparing