Which test determines if an item of accounting information is worthwhile collecting?
A)Cost test
B)Cost/benefit test
C)Worthwhile test
D)Validation test

Question

Quizplus · Accepted Answer

The cost/benefit test compares the cost of collecting and reporting accounting information to the benefits that the information provides. If the benefits outweigh the costs, then the information is considered worthwhile collecting. Using this test helps to ensure that accounting information is both relevant and reliable.

Which Test Determines If an Item of Accounting Information Is