The Benefits of Reporting Financial Information Must Exceed the Costs

question 58

Multiple Choice

The benefits of reporting financial information must exceed the costs of doing so,according to which characteristic of financial information?

• A)the concept of materiality
• B)faithful representation
• C)cost constraint
• D)verifiability

---

Definitions:

SFC

Stands for Securities and Futures Commission, a regulatory agency overseeing securities and futures markets for integrity and protection against malpractice.

Nautical Navigation

The process and practice of charting a course for ships, boats, and other watercraft over bodies of water.

International Trade

The exchange of goods, services, and capital across international borders or territories.

Cash-Poor

Describing a situation or a person having liquid assets significantly lower than their current liabilities or needs.