Which of the following is a pervasive constraint under the "original" qualitative characteristics of accounting, pre-SFAC No. 8? It is an entity-specific constraint post SFAC No. 8.
A)Decision usefulness
B)Understandability
C)Materiality
D)Neutrality

Question

Quizplus · Accepted Answer

Materiality is a pervasive constraint under the "original" qualitative characteristics of accounting, pre-SFAC No. 8. However, it became an entity-specific constraint post SFAC No. 8 because materiality depends on the size and nature of the transactions involved and can vary from one entity to another. Therefore, the correct answer is C.

Which of the Following Is a Pervasive Constraint Under the "Original