Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 2 - Conceptual Framework for Financial Reporting - Brief Exercises - Page 70: BE2-10c

Answer

(c) Willis Company - Cost-benefit relationship

Work Step by Step

Cost-benefit relationship ensures that the expense of gathering, preparing, or obtaining specific information is lower than the benefit obtainable. Thus, Willis Company does not gather information that would be more costly than the benefit.
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