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Question 13. The two main requirements of financial information are that it should: Be prudent and...

Question 13. The two main requirements of financial information are that it should:

Be prudent and free from bias

Adhere to the principles of going concern and consistency

Be relevant and offer a faithful representation

Be complete and comparable

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Answer #1

(13). There are many requirements that needed for the reporting of Financial Information:

The two main requirements are (i). Relevant and (ii). Offer a faithful representation, because these are helpful in decision-making.

Relevant financial information have the capacity of making a difference in the decision.

Faithful representation gives the stakeholders and other peoples interested in, an ability to take decision and rely on it.

Therefore, two main requirements of financial information are that it should,"Be relevant and offer a faithful representation".

Hence, Option(c) is correct.

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