Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 2 - Conceptual Framework for Financial Reporting - Review and Practice - Questions - Page 62: 28


Ideally, accounting information is largely subjected to the cost constraint. Information is not worth providing unless the benefits exceed the costs of preparing it.

Work Step by Step

Its also important to point out that the major constraints inherent to the presentation of accounting information are cost and materiality.
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