Objective accounting information:
A)cannot be used in the financial statements.
B)requires that values of transactions and related assets and liabilities created by them be arbitrarily determined.
C)ensures that revenue matches expenses for every accounting period.
D)states that financial accounting information must be reliable and verifiable.

Question

Quizplus · Accepted Answer

Objective accounting information must be reliable and verifiable, meaning that it is free from bias and can be confirmed through independent sources. This is a fundamental requirement of financial accounting, as it ensures that the information presented in the financial statements is accurate and trustworthy. A, B, and C are incorrect because objective accounting information can and should be used in the financial statements, should be based on actual values rather than arbitrary ones, and does not necessarily require that revenue match expenses for every accounting period.

Objective Accounting Information