The Cost-Effectiveness Constraint Asserts That an Item Should Be Included

question 135

True/False

The cost-effectiveness constraint asserts that an item should be included in a financial statement if its omission or misstatement would tend to mislead the reader.

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Definitions:

Free and Nonreproducible

Goods or services that are available without cost but cannot be duplicated or created again in the exact form.

Nature

The physical world collectively, including plants, animals, landscapes, and other features and products of the earth as opposed to humans or human creations.

Land Rent

Payment made for the use of land, typically based on its productivity, location, and the competitive demand for land use.

Acres

A unit of measurement used primarily in the U.S. to describe the size of land, equating to 43,560 square feet.