Faithful Representation Is a Characteristic of External Financial Reporting That

question 49

Multiple Choice

Faithful representation is a characteristic of external financial reporting that means:

• A)the financial reports of a business are assumed to include the results of only that business's activities.
• B)financial information can be compared across businesses because similar accounting methods are applied.
• C)the results of business activities are reported using an appropriate monetary unit.
• D)financial information depicts the economic substance of business activities.

---

Definitions:

Functional Ability

A person's capacity to perform tasks and activities that are typically necessary in day-to-day life.

Ambulate

The ability or act of walking or moving from one place to another, often used in medical contexts regarding patients' mobility.

Instrumental Activities

Tasks that are necessary for independent living, such as managing finances, household chores, and medication management.

Daily Living

Activities and tasks performed on a daily basis necessary for personal care and independent living, such as eating, bathing, and dressing.