According to the Conceptual Framework Faithful Representation Does Not Include

question 38

Multiple Choice

According to the Conceptual Framework faithful representation does not include which of the following?

• A)neutrality
• B)timeliness
• C)freedom from material error
• D)completeness

---

Definitions:

Perpetual Inventory Method

An accounting practice where the inventory records are updated immediately after every addition or subtraction, providing a continuously accurate inventory level.

Journalize

The act of recording business transactions in the chronological accounting record known as the journal.

Terms 2/10, N/30

A payment term indicating that a buyer can take a 2% discount on the invoice amount if the payment is made within 10 days; otherwise, the full invoice amount must be paid within 30 days.

Perpetual Inventory Method

The perpetual inventory method is a system of accounting for inventory that continuously updates the quantity and value of inventory items after every transaction.