Which of the Following Are the Constraints on How Broadly

question 47

Multiple Choice

Which of the following are the constraints on how broadly accounting rules can be applied?

• A)Industry practices constraint and cost-benefit constraint.
• B)Disclosure principle constraint and cost-benefit constraint.
• C)Industry practices constraint and disclosure principle constraint.
• D)Cost-benefit constraint and disclosure principle constraint.

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Definitions:

Inflation Rate

The percentage rate of increase in price levels over time, which can erode purchasing power.

Inflation Expectations

The rate at which people expect the prices of goods and services to increase in the future, which can influence economic behavior.

Unemployment Rate

The fraction of people in the labor market who are not employed but are seeking a job.

Short-run Phillips Curve

A graphical representation showing the inverse relationship between unemployment and inflation rates in an economy over the short term, suggesting a trade-off between the two.