[amp_mcq option1=”Objectivity concept” option2=”Timing concept” option3=”Timeliness concept” option4=”Reliability concept” correct=”option3″]
The correct answer is C. Timeliness concept.
The timeliness concept states that financial statements should be published or presented in a timely manner so that users can make informed decisions. This means that financial statements should not be delayed, even if there are some incomplete or uncertain information.
The objectivity concept states that financial statements should be based on objective evidence. This means that financial statements should not be based on personal opinions or judgment.
The reliability concept states that financial statements should be free from material errors and bias. This means that financial statements should be accurate and complete.
The consistency concept states that financial statements should be prepared using the same accounting principles from period to period. This means that financial statements should be comparable over time.