1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
olga55 [171]
2 years ago
13

According to the FASB conceptual framework, the rele-vance of providing information in financial statements is subject to the co

nstraint of:
a. Comparability.

b. Cost-benefit.

c. Reliability.

d. Faithful representation.
Business
1 answer:
Liula [17]2 years ago
6 0

Answer:

B. Cost-Benefit

Explanation:

According to the Financial Accounting Standard Board (FASB) framework, it is important to estimate the cost and benefit of information before deciding the relevance of the information. It decides when to disclose and whether to disclose the information

Once, the cost of such information outweighs the benefits of its disclosure then FASB framework terms it as not relevant.

Cost of Information

Financial reporting through the preparation of financial statements has a cost, these costs include provision, preparation as well as the audit of the information provided. The cost-benefit constraint basically intends to ensure that financial statements are most-effectively and most-efficiently prepared.

You might be interested in
The direct write-off method records bad debt expense only when an account becomes uncollectible, which is not always in the same
Alchen [17]

The direct write-off method violates the <u>matching principal</u>, which says that revenues and expenses are recorded in period that they occur (not necessarily when they are collected/written off).

5 0
3 years ago
Jorge and Fred have a product they would like to sell. They decide to share the risks and profits by forming an unincorporated b
sukhopar [10]
<span>The business organization Jorge and Fred have most likely formed is an Partnership. Because they share all profits and risks caused by an organisation. There is a major advantage in partnership where we can take decisions and plans together and strive towards the excellence of the organization. Even-though there is a debt problem we can share and solve the debts.Mutual Understanding is the main point in Partnership.</span>
3 0
3 years ago
Read 2 more answers
Your sister is thinking about starting a new business. The company would require $380,000 of assets, and it would be financed en
Andrews [41]

Answer:

$51,300

Explanation:

Given that,

Assets require = $380,000

Return on the invested capital, ROE = 13.5%

ROE = Net income ÷ Total Equity

0.135 = Net income ÷ $380,000

0.135 × $380,000 = Net income

$51,300 = Net income

Therefore, the net income must be expected to warrant starting the business is $51,300.

Note: Since, all of the total assets are financed by the common stock.

5 0
2 years ago
A producer has indicated to a potential client that the proposed life insurance policy is covered by the Massachusetts Life and
Ksivusya [100]

There are lot of people involved in production. The action taken by the producer is prohibited by law.

<h3>Which  actions is considered to be an unfair trade practice?</h3>

Unfair business practices are said to be any kind of misrepresentation, untrue advertising or depiction of a good or service,  noncompliance with the terms of manufacturing standards, etc.

The action of the producer is prohibited because it is not the right thing to do and also not backed up by law.

Learn more about Producers from

brainly.com/question/8806324

5 0
2 years ago
Why should we hire you? Is this a behavioral, situational,&amp;/or job knowledge/worker requirement interview question
Ivenika [448]

Answer:

It's a behavioral and situational question.

Explanation:

4 0
2 years ago
Other questions:
  • Which type of franchising involves a franchisor licensing a franchisee to sell specific products under the​ franchisor's brand n
    13·1 answer
  • Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing
    8·1 answer
  • Which of the following statements about market share is true?
    10·1 answer
  • A manager employed 100 workers at the beginning of an accounting period, and 120 workers at the end of the period. During the ac
    8·1 answer
  • A perfectly elastic demand function A. shows that a consumer is willing to pay any amount for the product. B. has a marginal rev
    9·1 answer
  • Renaissance Technologies (RenTech) is a good example of a hedge fund that has benefited from the ________________ to the financi
    5·1 answer
  • Specialization and trade are closely linked to_____.
    6·1 answer
  • Assume that the current price of a stock is $80 and that 1 year from now the stock will be worth either $90 or $75. The exercise
    12·1 answer
  • Improvised explosive devices (IEDs) are responsible for many deaths in times of strife and war. Unmanned ground vehicles (robots
    11·1 answer
  • Why it is important to prepare a bank reconciliation statement at the end of each month​
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!