Question

1. Neutrality of information in the financial statements most closely contributes to which qualitative characteristic? 2.What...

1. Neutrality of information in the financial statements most closely contributes to which qualitative characteristic?

2.What type of audit opinion is the most ideal one issued by an auditor?

4.Financial statements should reflect transactions in the period when they actually occur. Which of the following represents this assumption?

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Answer #1

Answer to 1. Faithful representation because this means that financial information must be complete,neutral and free from error hence neutrality of information in the financial statements most closely contributes to faithful representation.

Answer to 2. Unqualified opinion is the most ideal opinion issued by the auditor which means the company financial statements are truly and fairly presented without any exceptions.

Answer to 4. Accural accounting method.As per this method transactions are recorded when they occur or accured regardless of when cash transactions occur.Basically this involves matching of revenues with expenses during the period of occurrence.

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