The Principle of Faithful Representation

question 87

Multiple Choice

The principle of faithful representation:

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

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Definitions:

Siphons

Structures in some aquatic organisms that facilitate the exchange of water or air, often used for feeding, breathing, or locomotion.

Polychaete

A member of the class Polychaeta, these are marine annelid worms characterized by their segmented bodies, many with paired, paddle-like appendages called parapodia for movement and breathing.

Oligochaete

A class of annelids comprising earthworms and related species, characterized by having few setae (bristles) per segment.

Bivalvia

Bivalvia is a class of marine and freshwater mollusks with bodies enclosed by a two-part hinged shell, including clams, oysters, mussels, and scallops.