Which of the following are the constraints on how broadly accounting rules can be applied?
A)Industry practices constraint and cost-benefit constraint.
B)Disclosure principle constraint and cost-benefit constraint.
C)Industry practices constraint and disclosure principle constraint.
D)Cost-benefit constraint and disclosure principle constraint.

Question

Quizplus · Accepted Answer

Industry practices and cost-benefit constraints are limitations on the broad application of accounting rules. Industry practices constraint allows for deviations in accounting methods based on common practices within an industry, ensuring relevance and comparability for users of financial statements. The cost-benefit constraint ensures that the value of the information provided by accounting exceeds the cost of providing it, balancing the need for detailed information with the practicality of its provision.

Which of the Following Are the Constraints on How Broadly