What is the constraint that limits the information provided by financial reporting?
A) Timeliness
B) Materiality
C) Comparability
D) Cost

Question

Quizplus · Accepted Answer

The primary constraint that limits the information provided by financial reporting is cost. Companies must balance the cost of obtaining and communicating financial information with the benefits that users will derive from that information. Timeliness, materiality, and comparability are all important factors to consider when preparing financial statements, but they are not as fundamental as cost.

What Is the Constraint That Limits the Information Provided by Financial