Which of the Following Is Considered a Constraint by Statement

question 9

Multiple Choice

Which of the following is considered a constraint by Statement of Financial Accounting Concepts No. 8?

• A) Cost
• B) Conservatism
• C) Timeliness
• D) Verifiability

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Definitions:

Unearned Rent Revenue

Liability account that reflects payments received for rent before the rental period has occurred; it is recognized as revenue over time as the service is provided.

Rent Expense

The cost incurred by a business to utilize property as an office, manufacturing space, storage, or retail location.

Prepaid Rent Expense

An asset account that shows the amount of rent paid in advance, which has not yet been consumed or used.

Freight-In

The cost associated with transporting goods into a facility, usually included in the inventory cost of the goods purchased.