Which fundamental principle requires that all business transactions entered in the accounting records be duly supported by verifiable evidence?

• A. Objective Principle
• B. Consistency
• C. Materiality
• D. Adequate Disclosure

Answer: (A)

The main concept here is that accounting records should be built on verifiable, unbiased evidence. The Objectivity Principle requires that every entry be supported by objective source documents such as invoices, receipts, bank statements, and third‑party confirmations. This verifiability ensures that numbers can be checked independently, reducing biases and making the financial statements more reliable for users and auditors.

Other principles focus on different ideas: consistency is about using the same methods over time, materiality concerns whether items are significant enough to affect decisions, and adequate disclosure deals with providing enough information in the statements. None of these require verifiable documentary support in the same way, so the Objectivity Principle best matches the requirement that transactions be duly supported by verifiable evidence.