Question

Verifiability as used in accounting includes

a) Determining the revenue first, then determining the costs incurred in earning that revenue
b) The entity's giving the same treatment to comparable transactions from period to period
c) Similar results being obtained by bother the accountant and an independent party using the same measurement methods
d) The disclosure of all facts that may influence the judgement of an informed reader

Answer 1

Verifiability in accounting refers to the disclosure of all facts that may influence the judgement of an informed reader. It ensures transparency and allows others to confirm and validate the accuracy of financial information. Providing documentation and evidence to support transactions or events helps make the information verifiable.

Step-by-step explanation:

In accounting, verifiability refers to the disclosure of all facts that may influence the judgement of an informed reader. This means providing all relevant information about a transaction or event in a transparent and reliable manner. Verifiability ensures that others can confirm and validate the accuracy and reliability of the financial information.

For example, if a company records a sale, it should provide the necessary documentation and evidence to support the recognition of that revenue. This could include invoices, contracts, or other relevant documents. By doing so, the company makes the information verifiable and allows independent parties to assess the accuracy of the reported revenue.