Important constraints underlying the qualitative characteristics of accounting information are
A) historical cost and going concern.
B) materiality,conservatism,and cost-effectiveness.
C) consistency,comparability,and conservatism.
D) verifiability,neutrality,and representational faithfulness.

Question

Quizplus · Accepted Answer

The constraints of materiality, conservatism, and cost-effectiveness are important for ensuring that accounting information is relevant, reliable, and accurately reflects the economic realities of a business. Historical cost and going concern are accounting assumptions, while consistency, comparability, verifiability, neutrality, and representational faithfulness are qualitative characteristics of accounting information.

Important Constraints Underlying the Qualitative Characteristics of Accounting Information Are