Question 18 of 20 000 points TB 1304 Which of the following

Question 18 (of 20) 0.00 points TB 13-04 Which of the following are the constraints on how Which of the following are the constraints on how broadly accounting rules can be applied? O Disclosure principle constralnt and cost-benefit constraint O Industry practices constraint and disclosure principle constraint. O Cost-benefit constralnt and disclosure principle constraint. O Industry practices constraint and cost.benefit constraint. TB 13-04 Which of the following are the constraints on how

Solution

The correct option is D) Industry practices constraint and cost-benefit constraint.

When deciding about what information must be recorded and reported in order to make the financial statements useful to management and the public, employees must consider several constraints. These constraints are Cost-Benefit, Materiality, Substance over form, Industry peculiarities and Verifiability. but it does not include disclosure principle.

Therefore from the given constraints Industry practices constraint and cost-benefit constraint are the constraints on how broadly accounting rules can be applied.