Worldatwork Exam T7 Topic 1 Question 98 Discussion

Actual exam question for Worldatwork's T7 exam

Question #: 98
Topic #: 1

[All T7 Questions]

Company XYZ does not disclose any information in the notes to their financial statements unless the value of the information to users exceeds the expense of gathering it. Which constraint of Level 3 of the conceptual framework does this represent?

ACost

BMateriality

CExpense

DDisclosure

Show Suggested Answer

Suggested Answer: B

by Levi at Sep 16, 2024, 09:44 AM

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Karan

1 months ago

Hmm, let's see... I'll go with 'the constraint of not disclosing information about cookies in the financial statements.'

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Nickie

2 days ago

User 3: Yeah, it wouldn't make sense to incur expenses for information that is not important to users.

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Darrin

3 days ago

User 2: I agree, it makes sense to only disclose information that is material to users.

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Trina

8 days ago

User 2: I agree, it makes sense to only disclose information that is material to users.

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Wilson

18 days ago

User 1: I think it's B) Materiality.

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Adolph

1 months ago

User 1: I think it's B) Materiality.

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Rasheeda

2 months ago

I'm gonna go with 'Chocolate Chip Cookie' just to keep things interesting.

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Stefany

1 months ago

C) Expense

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Virgie

1 months ago

B) Materiality

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Augustine

1 months ago

A) Cost

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Celeste

2 months ago

Expense? Isn't that just another word for cost? I'm not buying it.

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Tamala

4 days ago

D) Disclosure

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Jaime

8 days ago

C) Expense

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Lashandra

1 months ago

B) Materiality

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Val

1 months ago

A) Cost

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Elke

2 months ago

Disclosure? Really? That's like the opposite of what the question is asking. Who comes up with these answer choices?

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Elbert

2 months ago

I was going to say materiality, but then I realized that's a different concept. Cost makes the most sense for this scenario.

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Dominque

2 months ago

The cost constraint is definitely the right answer here. If the expense of gathering the information outweighs its value to users, then it's not worth disclosing.

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