- 1 Marks
Question
The accounting principle that requires financial statements information to be supported by evidence other than someone’s opinion or imagination is known as:
A. Consistency
B. Prudence
C. Accrual
D. Aggregation
E. Objectivity
Answer
E
Explanation:
The objectivity principle requires that all financial information and statements be supported by unbiased evidence and documentation. This principle ensures that the information presented in the financial statements is free from bias and personal influence, thereby making it reliable for users.
- Tags: Accounting principles, Evidence-based Information, Objectivity
- Level: Level 1
- Uploader: Theophilus