Which of the following are considered pervasive constraints by Statement of Financial Accounting Concepts No.2?
A)Cost-benefit relationship and conservatism
B)Timeliness and feedback value
C)Conservatism and verifiability
D)Materiality and cost-benefit relationship

Question

Quizplus · Accepted Answer

Statement of Financial Accounting Concepts No.2 lists materiality and cost-benefit relationship as the two pervasive constraints in accounting. These constraints help to ensure that financial reporting is useful and relevant to users while also being practical and cost-effective to prepare. Conservatism, verifiability, timeliness, and feedback value are not considered pervasive constraints, although they are important qualitative characteristics of financial reporting.

Which of the Following Are Considered Pervasive Constraints by Statement