Accountıng I Deneme Sınavı Sorusu #1173341
What is faithful representation?
It states that assets are recorded at their cost. |
It states that assets and liabilities are reported at their fair value. |
It means the factuality of financial statements. |
It is the universally accepted accounting principle that all material matters are to be disclosed. |
It refers the impact capacity of financial information on the decisions of information users. |
The historical cost principle states that assets are recorded at their cost.The fair value principle states that assets and liabilities are reported at their fair value. Relevance refers the impact capacity of financial information on the decisions of information users.Relevance also contains materiality concept which is the universally accepted accounting principle that all material matters are to be disclosed. Faithful representation means that the numbers and disclosures match what really existed or happened.
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