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Financial Reporting (FR) - Specimen Exam（四）
Financial statements represent transactions in words and numbers. To be useful, financial information must represent faithfully these transactions in terms of how they are reported.
Only one of the following four statements regarding faithful representation is true. Identify that statement, by clicking on the relevant box in the table below, and mark all of the others as false.
The correct answer is:
Derecognising factored trade receivables sold without recourse to the seller is an example of faithful representation.
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