Which one of the following statements best describes objectivity?
A)When uncertainty exists, understating assets, overstating liabilities, accelerating recognition of losses, and delaying recognition of gains is preferred.
B)The measurement of an event is verifiable and reliable.
C)Different firms use identical accounting measurement methods for similar events.
D)Objectives are laid out that are conservative or too aggressive by management.

Question

Quizplus · Accepted Answer

Objectivity refers to the ability of measurements or observations to be verified and reliable. Option A refers to conservatism, while option C refers to comparability. Option D refers to management's subjective intent, which is not necessarily objective.

Which One of the Following Statements Best Describes Objectivity