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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Celeste

9 hours ago

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

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Elke

3 days 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

4 days 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

8 days 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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