Which of the following accounting concepts states that before a transaction is recorded, sufficient evidence must exist to allow two or more knowledgeable individuals to reach essentially the same conclusion about the transaction?
A) Continuity assumption
B) Separate entity assumption
C) Cost principle
D) Reliability quality
E) Materiality constraint

Question

Quizplus · Accepted Answer

This concept is known as the reliability quality, which requires that evidence supporting a transaction must be reliable enough to allow multiple individuals to reach the same conclusion about it.

Which of the Following Accounting Concepts States That Before a Transaction