Which of the following is/are constraints in the financial reporting process?
A)Classifying a revenue versus an expense in the income statement.
B)Using the historical cost versus the fair value method to measure transactions.
C)Recognizing an asset versus a liability in the balance sheet.
D)Benefits of information versus the costs of producing that information.

Question

Quizplus · Accepted Answer

Benefits of information versus the costs of producing that information is a constraint in the financial reporting process as companies need to balance the usefulness of the information with the cost of producing it. Choices A, B, and C are accounting principles or methods, not constraints.

Which of the Following Is/are Constraints in the Financial Reporting