The objectivity concept requires that
A) business transactions be consistent with the objectives of the entity
B) the Financial Accounting Standards Board be fair and unbiased in its deliberations over new accounting standards
C) accounting principles meet the objectives of the Securities and Exchange Commission
D) amounts recorded in the financial statements be based on independently verifiable evidence

Question

Quizplus · Accepted Answer

The objectivity concept requires that amounts recorded in the financial statements be based on independently verifiable evidence. This means that the information reported in the financial statements should be factual and not influenced by personal biases or opinions. It is important for investors and other stakeholders to have confidence in the objectivity of financial statements in order to make informed decisions.

The Objectivity Concept Requires That