Which of the following is considered a practical constraint on the qualitative characteristics?

Multiple Choice 

Verifiability

Conservatism.

Cost effectiveness.

Timeliness.

Answer : Cost effectiveness

Explanation: In order to provide the relevant informations to the users of financial statement, FASB listed some qualitative characteristics. Constraint on the qualitative characteristics are the limitatrions that a firm faces while providing accounting informations based on the qualitative characteristics. The most practicle constraint on the qualitative characteristics is the cost-effectiveness.

It states that the benefit derived for using the accounting principle must always be greater than the cost of applying the accounting principle.