The Principle of Faithful Representation

question 71

Multiple Choice

The principle of faithful representation

• A) Requires that information be complete, neutral and free from error, so assets and income are not overstated, and liabilities and expenses are not understated
• B) Requires that a company use the same accounting methods period after period
• C) Requires that revenues and costs be reported in the period in which they are earned or incurred
• D) Requires that all items of a material nature be included in financial statements
• E) Requires that all inventory items be reported at full cost

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Definitions:

Memorized

The process of committing information or data to memory for later recall.

Deep Structure

In linguistics, the underlying syntactic structure or meaning of a sentence, as opposed to the surface structure which is how it is expressed.

Surface Structures

The outward appearance or organization of something, especially in linguistics where it refers to the specific syntax or wording of a sentence.

Transformational Grammar

A theory of grammar that focuses on how sentences can be transformed into other sentences through the application of rules.