One of the two constraints in accounting is:
A) comparability.
B) materiality.
C) faithful representation.
D) relevance.

Question

Quizplus · Accepted Answer

Materiality is one of the two constraints in accounting which states that a company should only record information that is material, or significant, in order to ensure efficient use of resources and prevent overwhelming users with irrelevant information. The other constraint is relevance, but only one option can be chosen. Comparability and faithful representation are characteristics of useful financial information.

One of the Two Constraints in Accounting Is