Financial Accounting
10th Edition
ISBN: 9781119298229
Author: Weygandt, Jerry J.; Kieso, Donald E.; Kimmel, Paul D.
Publisher: WILEY
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Chapter 3, Problem 26Q
To determine
Accounting information: Accounting information refers to that information which is concluded from financial statements.
Following two are the major constraints in the presentation of the accounting information:
- a) Materiality constraint: Materiality of the items keep varying from company to company. Therefore, including or omitting the material items can affect the presentation of accounting information.
- b) Cost constraint: Cost related to providing information is borne by company but it should be measured against the benefits of relevant users who use this information for decision making and gains.
Major constraint in the presentation of the accounting information.
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Chapter 3 Solutions
Financial Accounting
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