The assumption of faithful representation includes which of the following?

The assumption of faithful representation emphasizes that financial statements should present a true and fair view of the financial position and performance of an entity. This principle requires that the information provided be complete, free from material errors, and unbiased.

When financial statements fulfill these criteria, users can rely on them to make informed decisions, knowing that the information accurately reflects the company's transactions and circumstances. For instance, completeness ensures all necessary information is included, minimizing the risk of misinterpretation, while being error-free means that any calculations and data presented are correct. Unbiased information allows users to perceive the financial situation without being misled by manipulation or subjective interpretations.

Thus, the correct answer embodies the foundational elements of faithful representation, creating a reliable and transparent basis for financial analysis and decision-making.