The underlying concept that the value of accounting information must exceed the expenditures incurred to provide it is called the:
A) substance over form.
B) cost/benefit implementation constraint.
C) conservatism.
D) full-disclosure principle.

Question

Quizplus · Accepted Answer

The concept that the value of accounting information must exceed the expenditures incurred to provide it is referred to as the cost/benefit implementation constraint. This concept is essential because it implies that the costs of collecting, processing, and disseminating financial information should be lower than the benefits derived from using that information. In other words, companies should only invest in accounting information that provides value that is greater than the cost of producing it.

The Underlying Concept That the Value of Accounting Information Must