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According to the lesson's framework, accounting "constraints" stand in contrast to accounting assumptions and concepts. Which of the following items is listed by the lesson as a constraint?
Answer & Solution
Correct answer: A.
1. The lesson groups Materiality, Prudence, Consistency and Cost Benefit as constraints.
2. Going Concern is an assumption, not a constraint.
3. Revenue Realisation and Matching are accounting concepts.
4. So Materiality is the constraint in the list.
_Source: ICSI CS Executive Paper 5 (Corporate and Management Accounting) — Lesson 1 & 2: Introduction to Financial and Corporate Accounting, pp. v–vii and x._
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