Accounting Information That Is Supported by Adequate Evidence Is More

question 15

Multiple Choice

Accounting information that is supported by adequate evidence is more likely to meet the Conceptual Framework's criteria of:

• A) faithful representation.
• B) relevance.
• C) comparability.
• D) understandability.

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Definitions:

CICA

Canadian Institute of Chartered Accountants, responsible for setting accounting and auditing standards in Canada.

Financial Lease

A type of lease in which the lessee is effectively considered to own the asset during the lease term and bears the risk of obsolescence.

Tax Avoidance

The legal practice of structuring financial affairs to minimize tax liabilities without violating the law.

CRA

The Canada Revenue Agency (CRA) is a governmental agency that administers tax laws for the Canadian federal government and for most provinces and territories.