A persuasive constraint that ensures the value of the information provided is greater than the costs of providing it.
A) financial reporting objective constraint
B) cost constraint
C) going concern constraint
D) economic entity constraint

Question

Quizplus · Accepted Answer

The cost constraint in accounting ensures that the value of the information provided by financial reporting is greater than the costs associated with gathering, processing, and disseminating that information. This principle helps in making sure that the benefits of providing certain financial information outweigh the associated costs.

A Persuasive Constraint That Ensures the Value of the Information