(L.O. 4) According to Statement of Financial Accounting Concepts No. 8, completeness is an ingredient of:

Relevance Faithful Representation

a. Yes Yes

b. Yes No

c. No No

d. No Yes Approach and Explanation: In answering this question, read the stem and answer “Yes” (true) or “No”

(false) when completing the statement with the quality of relevance. Then reread the stem and answer

“Yes” or “No” when completing the statement with the quality of faithful representation. Then look for the corresponding combination of “Yes” and “No” to select your answer. In the diagram of the hierarchy of accounting qualities, completeness is linked to faithful representation and not relevance. Therefore, we want to respond “No” to the relevance column and “Yes” to the faithful representation column. (Solution = d.)