The test to determine if an item of accounting information is worthwhile collecting is the:
A) cost/benefit test.
B) cost test.
C) worthwhile test.
D) validation test.

Question

Quizplus · Accepted Answer

The cost/benefit test determines if the cost of collecting and reporting accounting information is less than the benefits it provides. If the benefits outweigh the costs, the information is deemed worthwhile to collect. Therefore, option A is the correct answer.

The Test to Determine If an Item of Accounting Information