Which accounting principle requires that financial statements reflect the econom

Which accounting principle requires that financial statements reflect the economic reality of a business?

Which accounting principle requires that financial statements reflect the economic reality of a business?

Step 1: Understand that financial statements are reports that show the financial position of a business.
Step 2: Learn that there are principles that guide how these statements are prepared.
Step 3: Identify the principle called 'Substance Over Form'.
Step 4: Recognize that this principle means the financial statements should show the true economic reality of the business.
Step 5: Realize that this principle is more important than just showing the legal aspects of transactions.

No concepts available.