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 Security and Exchange Commission
D)amounts recorded in the financial statements be based on independently verifiable evidence

Question

Quizplus · Accepted Answer

The concept of objectivity in accounting requires that amounts recorded in the financial statements be based on independently verifiable evidence. This means that the information provided by the financial statements should be unbiased and based on neutral, factual information that can be independently verified by others. This helps to ensure that financial information is reliable and trustworthy, which is important for decision-making and accountability purposes.

The Objectivity Concept Requires That