Question

The objectivity principle requires that a. accounting principles must meet the objectives of the Security and Exchange Commission b. amounts recorded in the financial statements must be based on independently verifiable evidence c. business transactions must be consistent with the objectives of the entity d. the Financial Accounting Standards Board must be fair and unbiased in its deliberations over new accounting standards

Answer 1

Answer: The answer is B

Explanation:

Accounting principles can be defined as the rules and convention adopted as a general guide to action by the accounting profession. It is a basic rules and regulation that are observed in keeping accounting records to make such records fair and objective.

The principle of objectivity means independence of judgement on the part of the accountant preparing the financial statements. Objectivity requires support by verifiable evidence, in contrast to subjectivity or dependence on the unverifiable opinion of the accountant preparing the financial statements.