Final answer:
The Objectivity Concept in accounting requires that records be based on the most verifiable data to ensure the accuracy and reliability of financial information.
Step-by-step explanation:
The correct answer to the student's question is C. Objectivity Concept. The objectivity concept in accounting states that accounting records should be based on the most verifiable data. This concept ensures that the financial statements and recorded transactions are based on evidence that can be substantiated, such as invoices or receipts, as opposed to subjective opinions or estimates. This enhances the reliability and credibility of financial reporting.
For example, when a company records a sale, the amount recorded should be the actual price at which the sale was made, supported by documentation such as a signed contract or a sales receipt. Similarly, when recording an expense, the amount should correspond to the actual expense incurred, with supporting documentation like a bill or an invoice.
The objectivity concept is closely aligned with the correspondence theory of truth, which proposes that a statement is true if it corresponds to some fact. Just like in accounting, where a transaction is deemed accurate when it's supported by factual and verifiable data, a statement is considered true if it corresponds to a factual state of affairs in reality.