The measurement principle 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 measurement principle requires that amounts recorded in the financial statements be based on independently verifiable evidence. This means that the information presented in financial statements should be verifiable and reliable through independent sources or evidence. This ensures the accuracy and reliability of financial statements. Options A, B, and C are not related to the measurement principle.

The Measurement Principle Requires That