Accounting information that is supported by adequate evidence is more likely to meet the Conceptual Framework's criteria of:
A) faithful representation.
B) relevance.
C) comparability.
D) understandability.

Question

Quizplus · Accepted Answer

Adequate evidence supports the faithful representation of accounting information, which means that the information is complete, neutral, and free from material error. Relevance relates to the information's ability to make a difference in the decision-making process. Comparability refers to the ability to compare information with similar information from other periods or companies. Understandability relates to the user's ability to comprehend the information presented. While evidence is important for all four criteria, it has a direct impact on the faithful representation of accounting information.

Accounting Information That Is Supported by Adequate Evidence Is More