The accounting convention that the objectivity principle provides support for is:
A)historic cost.
B)prudence (conservatism).
C)relevance.
D)accounting period.

Question

Quizplus · Accepted Answer

The objectivity principle requires that financial transactions and information be supported by objective evidence, free from bias or personal judgment. The historic cost convention ensures that assets are recorded at their original cost, which is an objective and verifiable amount. Therefore, the objectivity principle supports the use of historic cost in accounting.

The Accounting Convention That the Objectivity Principle Provides Support for Is