If presentation of financial information/statement or accounting policy is designed with a pre-designed motive to influence the decision-making or judgement or achieve a pre-determined result or object, the financial statement are not said to have satisfied the criteria of ___________.

Relevance

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Materiality

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Neutrality

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Substance over form

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Solution

The correct option is C Neutrality
Financial report should present true and fair view, which means that financial statements must be free from errors or from other missions. Financial statements cannot be prepared with the purpose to influence certain decisions, i.e. they might be neutral.

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Similar questions

Information about accounting policies assists financial readers in better interpreting a company’s financial statements. It is given in ___

Which of the following statement is true?

Statement A: Financial statements are prepared on the basis of accounting principles.

Statement B: Any changes in the accounting principles or method will affect the utility of the financial statements.

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