The accounting convention of ________ guides the design of accounting systems.
A)objectivity
B)cost benefit
C)conservatism
D)materiality

Question

Quizplus · Accepted Answer

The cost benefit convention guides the design of accounting systems because it ensures that the costs of obtaining and providing information are not greater than the benefits derived from that information. This convention considers the potential impact of implementing an accounting procedure or system and compares the costs of implementing it to the potential benefits to be gained from it.

The Accounting Convention of ________ Guides the Design of Accounting