The benefits of reporting financial information must exceed the costs of doing so,according to which characteristic of financial information?
A)the concept of materiality
B)faithful representation
C)cost constraint
D)verifiability

Question

Quizplus · Accepted Answer

The cost constraint principle of accounting dictates that financial reporting should not be so expensive that the cost of providing it outweighs the benefits that can be derived from it. In other words, the benefits of providing financial information should exceed the costs of doing so.

The Benefits of Reporting Financial Information Must Exceed the Costs