The objectivity concept requires that
A) business transactions must be consistent with the objectives of the entity
B) the Financial Accounting Standards Board must be fair and unbiased in its deliberations over new accounting standards
C) accounting principles must meet the objectives of the Security and Exchange Commission
D) amounts recorded in the financial statements must be based on independently verifiable evidence

Question

Quizplus · Accepted Answer

The objectivity concept in accounting requires that amounts recorded in financial statements must be based on independently verifiable evidence. This means that the information presented in financial statements should be reliable and unbiased, and not influenced by personal opinions or biases of the preparer. The concept of objectivity is important for ensuring that financial statements provide a fair and accurate representation of a company's financial performance and position.

The Objectivity Concept Requires That