Constraints on qualitative characteristics of accounting information include:
A)Freedom from material error.
B)Going concern.
C)Neutrality.
D)Cost effectiveness.

Question

Quizplus · Accepted Answer

Cost effectiveness is a constraint on the qualitative characteristics of accounting information, meaning that the benefits of providing the information should outweigh the costs associated with it. The other options (A, B, C) are not considered constraints but rather are aspects of the qualitative characteristics themselves or assumptions underlying financial reporting.

Constraints on Qualitative Characteristics of Accounting Information Include