The four main objectives of the "Statement of Principles for Financial Reporting" are:
A) Going Concern, Accruals, Consistency and Prudence
B) Relevance, Reliability, Comparability and Understandability
C) Going Concern, Relevance, Consistency and Comparability
D) Accruals, Prudence, Reliability and Understandability

Question

Quizplus · Accepted Answer

Relevance: to the needs of the user in predicting the future of confirming the past.Reliability: faithful representation of the underlying transactionsComparability: with other entities and with the same entity year on yearUnderstandability: users should be able to understand the statements, with appropriate accounting knowledge.Other terms relate to other concepts and ideas. They are all words that you need to be familiar with!

The Four Main Objectives of the "Statement of Principles for Financial