The Materiality Constraint

Multiple Choice

The materiality constraint:

A) Prescribes that only information that would influence the decisions of a reasonable person need be disclosed.
B) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
C) Provides guidance on when a company must recognize revenue.
D) Prescribes that accounting information is based on actual cost.
E) Prescribes that a company record the expenses it incurred to generate the revenue reported.