The Constraints on Financial Reporting Identified Under the IASB Framework

question 11

Multiple Choice

The constraints on financial reporting identified under the IASB Framework are:

• A)Cost versus benefit and materiality
• B)Timeliness and neutrality
• C)Understandability and materiality
• D)Understandability and cost versus benefit

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Definitions:

Collection Float

The time period between when a check is deposited and when the funds are made available.

Chequing Account

A bank account from which money can be withdrawn without notice, typically used for day-to-day spending and bill payments.

Deposit

A deposit refers to a sum of money placed into an account or given to another party as security for future transactions, often used in banking, leasing, and rental agreements.

Incremental Pre-tax Profits

Profits generated from a specific event or decision, calculated before taxes are deducted.