NOT using the net method because of difficulties that may arise is a good example of applying
A)relevance.
B)the cost/benefit constraint.
C)representational faithfulness.
D)the fair value principle.

Question

Quizplus · Accepted Answer

The cost/benefit constraint is a fundamental accounting principle that requires the benefits of financial information to justify its costs. Not using the net method due to difficulties is an example of applying this principle, as the additional effort required to apply the method may not outweigh the benefits it provides in certain situations. Relevance, representational faithfulness, and fair value are also important accounting principles but are not directly applicable to this scenario.

NOT Using the Net Method Because of Difficulties That May