Question

the quality that assumes that information is reasonably free from error is

Answer 1

Answer: faithful representation

This indicates a reliable disclosure of accounting information to stakeholders. Usually income statement, balance sheet, cash flows statement, retained earnings, directors’ report, auditors’ report, and various annexures are produced periodically (once in a year). As per the concept of faithful representation, stakeholders should rely on these accounting information; it is required for their decision making process. Therefore, it is necessary that these must be complete, neutral, and reasonably free-from-error.