ACCA FA · Chapter 2 · Question 4 of 10
To be a perfectly faithful representation, financial information should have three characteristics. Which of the following is NOT one of them?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Verifiable
Explanation
The Conceptual Framework states that a faithful representation is complete, neutral and free from error. Verifiability is an enhancing qualitative characteristic: it helps assure users that information faithfully represents what it claims to, but it is not one of the three components of faithful representation itself.
More The qualitative characteristics of financial information MCQs
- Q6Which of the following best describes the principle of substance over form?
- Q7Under the accruals (accrual basis) concept, when are the effects of transactions recognised?
- Q8How does the IASB Conceptual Framework define a liability?
- Q9Which of the following would meet the Conceptual Framework definition of an asset of a trading company?
- Q10Which of the following is NOT income as defined in the Conceptual Framework?