Representational Faithfulness Is a Relationship Between the Reported Accounting Measurements

question 8

Multiple Choice

Representational faithfulness is a relationship between the reported accounting measurements or descriptions and the economic resources, obligations, and the transactions and events causing changes in these items.This is important because the

• A)bias associated with financial measurements can be reduced
• B)validity of accounting data is an important economic resource
• C)accounting information is relevant for all decisions
• D)financial information is faithfully reported in the accounting records

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Definitions:

Secondary Drive

A learned or acquired drive that has an indirect association with physiological needs, such as the desire for money.

Optimal Level

The most favorable point, degree, or amount of something for a specific purpose, which maximizes efficiency or outcomes.

Task Performance

describes the execution and completion of a specific job or task, often measured in terms of efficiency and effectiveness.

Homeostasis

The tendency of a biological system to maintain internal stability and equilibrium despite changes in the external environment.