Question

The cost-benefit principle states that

Answer 1

that the cost of providing financial information in the financial statements must not outweigh the benefit of that information to the users.

Answer 2

Explanation:Cost Benefit Principle is an accounting principle and it states that, "the cost of providing financial information in the financial statements must not outweigh the benefit of that information to the users". It can also be referred to as

cost benefit relationship and it simply says that no financial information is free.