If accounting information is considered to have faithful representation,then which of the following is true?
A)The information represents to users what it claims to represent.
B)The information follows conservatism principles and is also material.
C)The information is considered pertinent to or affects decisions.

Question

Quizplus · Accepted Answer

Faithful representation means that the information accurately represents the economic events it claims to represent. Option A correctly reflects this concept by stating that the information represents to users what it claims to represent. Option B is incorrect because conservatism is not necessarily related to faithful representation, and materiality is a separate accounting concept. Option C is also not necessarily related to faithful representation since information can be pertinent but not faithfully representing the economic events.

If Accounting Information Is Considered to Have Faithful Representation,then Which