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3 years ago

A constraint on qualitative characteristics of accounting information is:

Business

2 answers:

Novay_Z [31]3 years ago

7 0

Answer:

cost effectiveness

Explanation:

In simple words, cost effectiveness refers to the attribute of some data or report in which the benefits of operations comes more than the cost leading to overall profit situation of the firm. As per the accounting standards, accounting information should be neutral, relevant and complete but cost effectiveness traits sometimes leads to some unethical practices like misleading information or misrepresentation.

Thus, cost effectiveness can be seen as a constraint on the accounting information as it works as an incentive to mislead the stakeholders or otherwise it could lead to damage to the firm in many ways.

Angelina_Jolie [31]3 years ago

5 0

Answer:

A constraint on qualitative characteristics of accounting information is COST EFFECTIVENESS

Explanation:

Cost-effectiveness places a constraint in qualitative characteristics of accounting information by analysing the way to examine both the costs and outcomes of one or more interventions. It compares an intervention to another intervention (or the status quo) by estimating how much it costs to gain a unit of a health outcome, like a life year gained or a death prevented

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