Conservatism, materiality, and disclosure are examples of constraining principles.

Question

Quizplus · Accepted Answer

Conservatism, materiality, and disclosure are principles that constrain or restrict the way financial information should be reported in order to ensure that it is accurate, relevant, and transparent. These principles help to prevent fraudulent or misleading financial reporting, and promote consistency and comparability in financial statements.

Conservatism, Materiality, and Disclosure Are Examples of Constraining Principles