Which of the following is a constraint in presenting financial information?
A) Cost-benefit relationship.
B) Full disclosure.
C) Relevance.
D) Consistency.

Question

Quizplus · Accepted Answer

The cost-benefit relationship is a constraint because it requires considering the costs of providing financial information, such as the time and resources needed to create and communicate it, against the benefits, such as the usefulness of the information to users. This constraint ensures that financial information is presented in a way that is both feasible and valuable. Full disclosure, relevance, and consistency are all principles or characteristics of financial reporting, not constraints.

Which of the Following Is a Constraint in Presenting Financial