The materiality constraint refers to:
A)the significance of an item of financial data in relation to other financial data.
B)whether the increased cost of complying with an accounting principle is justified by the benefit that would result.
C)existing accounting practices that have evolved based on the amount of debt that would be incurred by the business.
D)the idea that "when in doubt, take the conservative action."

Question

Quizplus · Accepted Answer

Materiality constraint refers to the significance of an item of financial data in relation to other financial data, determining whether its omission or misstatement would influence the decision-making of users of financial statements.

The Materiality Constraint Refers To