Accounting information is subject to the constraints of:
A)comparability and consistency.
B)comparability and verifiability.
C)materiality and cost.
D)relevance and faithful representation.

Question

Quizplus · Accepted Answer

Accounting information is subject to the constraints of materiality and cost, which means that the cost of providing the information should not outweigh its usefulness to decision-making, and only material information should be reported. Comparability and consistency, verifiability, and relevance and faithful representation are important characteristics of accounting information, but they are not considered constraints.

Accounting Information Is Subject to the Constraints Of