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nadya68 [22]
3 years ago
5

Part of the inventory of memory chips of a semiconductor company is obsolete because of the launch of more advanced products. Ho

wever, the company’s management still carries this inventory at historical prices in its balance sheet. Which primary qualitative characteristic is being violated here?
Social Studies
1 answer:
Natali5045456 [20]3 years ago
6 0

Answer: the primary qualitative characteristic that is being violated is called completeness.

Explanation:

When in accounting we talk about faithful representation we state that it should show what really are present and what really happened, as the case may be. There are three characteristics of faithful representation: 1. Completeness (adequate or full disclosure of all necessary information), 2. Neutrality (fairness and freedom from bias), and 3.  Free from error (no inaccuracies and omissions).

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