Management by Fact Dictates That Decisions Are Made Based on the Sound

question 82

True/False

Management by fact dictates that decisions are made based on the sound collection and analysis of data.

---

Definitions:

Economic Entity Assumption

The economic entity assumption is an accounting principle that treats a company as a separate entity from its owners for reporting purposes.

Comparability

A qualitative characteristic of financial information that allows stakeholders to identify similarities and differences between two or more sets of economic facts.

Faithful Representation

A fundamental qualitative characteristic in accounting, ensuring that financial information accurately reflects the economic events it purports to represent.

Financial Reporting

Generating documents that unveil the financial situation of a company to stakeholders, including managers, investors, and regulatory authorities.