Identify the accounting concept or principle that relates to the statement in each of the following questions:
-Information must represent faithfully the transactions or events that have occurred.
A) relevance
B) reliability
C) materiality
D) prudence.

Question

Identify the accounting concept or principle that relates to the statement in each of the following  questions:
-Information must represent faithfully the transactions or events that have occurred.
A) relevance
B) reliability
C) materiality
D) prudence.

Quizplus · Accepted Answer

The principle that relates to the statement is reliability. This principle requires that the accounting information is trustworthy, accurate, and unbiased, and that it represents faithfully the transactions or events that have occurred.

Identify the Accounting Concept or Principle That Relates to the Statement