Question

Which of the following statements is true? A : Accounting information should be neutral to enhance faithful representation. B : If the accounting information is neutral, it enhances timeliness. C : Neutral accounting information helps to compare methods of different companies.

Answer 1

A

Step-by-step explanation:

Faithful representation is one of the fundamental qualitative characteristics of financial reporting where relevance is the other characteristic.

For financial information to faithfully represent underlying business transactions of the business concerned ,it must neutral,unbiased and free from errors.

In other words , neutrality is part and parcel of faithful representation,hence my choice of answer