The key qualitative characteristic that requires accounting information to be as objective as possible is:
A) faithful representation.
B) materiality.
C) consistency.
D) cost-benefit test.

Question

Quizplus · Accepted Answer

The key qualitative characteristic that requires accounting information to be as objective as possible is faithful representation. This means that the information presented should be complete, neutral, and free from errors or biases. Objectivity is an essential element of faithful representation, as it ensures that the information is not influenced by personal opinions or beliefs. Materiality refers to the significance of an item or transaction in the context of financial reporting. Consistency requires that accounting practices are applied consistently over time. The cost-benefit test is a practical constraint on the usefulness of financial information.

The Key Qualitative Characteristic That Requires Accounting Information to Be