______ means that financial information must reflect the substance of the economic activity during the reporting period.
A) Relevance
B) Understandability
C) Consistency
D) Representation faithfulness

Question

Quizplus · Accepted Answer

Representation faithfulness is the principle of accounting which requires that financial information must reflect the true and fair view of the economic activity during the reporting period. This principle ensures that the financial statements are free from material misstatements and present a reliable picture of the financial performance and position of the entity.

______ Means That Financial Information Must Reflect the Substance of the Economic