Accounting information that does not provide measurement bias in favor of a particular set of companies has the characteristic of:

Question

Quizplus · Accepted Answer

Neutrality means that accounting information is free from measurement bias in favor of any particular set of companies. It ensures that financial reporting is objective and unbiased, providing accurate and reliable information for decision-making. Relevance refers to the information's significance and importance to the decision at hand, while consistency ensures that similar transactions are treated in the same way over time. Materiality means that information is significant enough to influence the decision of the reader. However, only Neutrality specifically relates to the concept of bias.

Accounting Information That Does Not Provide Measurement Bias in Favor