The amount of accounting information that could be supplied to any interested party is practically unlimited. The information needs to be designed in such a way that it meets the objectives of the specific user group. If too much information is given, the user might think that it is an attempt to mislead them, and as a result, all of the information may be totally rejected. In this context, accountants try to present accounts in such a way that they represent a true and fair view. The Companies Act, 1985, for example, requires company accounts to reflect this particular criterion, and it is advisable to apply it to all organisational entities. Unfortunately the Act does not define what is meant by true and fair, but it is assumed that accounts will be so if an entity has followed the rules laid down in appropriate accounting and financial reporting standards.
Question: it is a positive feature of the Companies Act, 1985, that it does not define what is meant by true and fair.
Options:
A. true, B. false, C. uncertain
Answer: B