Which of the Following Statement(s)is/are True of the Qualitative Characteristic

question 59

Multiple Choice

Which of the following statement(s) is/are true of the qualitative characteristic "reliability"?

• A)Information that is free from material bias and error.
• B)Information that faithfully represents what it purports to represent.
• C)Information that should affect the decisions of financial statement users.
• D)All of the given answers.
• E)Information that is free from material bias and error,and that faithfully represents what it purports to represent.

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Definitions:

Equity Method

A method of accounting that allows a company to record profits and losses based on its share of ownership in another company.

Controlling Influence

The power to govern the financial and operating policies of an entity so as to obtain benefits from its activities, typically seen in parent-subsidiary relationships.

Held-To-Maturity Securities

Debt securities that a firm has the intent and ability to hold until they mature rather than trading them.

Trading Securities

Financial instruments bought and held primarily for selling in the near term to profit from price changes.