If Accounting Information Is Considered to Have Faithful Representation,then Which

question 119

Multiple Choice

If accounting information is considered to have faithful representation,then which of the following is true?

• A)The information represents to users what it claims to represent.
• B)The information follows conservatism principles and is also material.
• C)The information is considered pertinent to or affects decisions.

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Definitions:

Acquirer's Accounting

The accounting method used by an acquiring company to record the assets, liabilities, and non-controlling interests of an acquired company.

Date of Combination

The specific date when two or more entities come together to form one entity or begin to operate as a combined entity.

Journal Entries

Records of financial transactions in the chronological order they occur, used in bookkeeping.