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Financial & Managerial Accounting
Found in: Page 29
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

What does the concept of objectivity imply for the information reported in financial statements? Why?

Financial statements are written records that show financial positions and the concept of objectivity makes them more reliable and accurate.

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Step by Step Solution

Definition of financial statements

Financial statements are defined as written records that show the financial position and financial health of a business.

Concept of objectivity

The concept of objectivity states that the financial statement of a business should be supported by some unbiased evidence rather than opinions or imagination. This concept helps to improve the reliability and verifiability of financial statements of the business.

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