Required information [The following information applies to the questions displayed below.] Assume that the FASB is considering revising an important accounting standard.

Required:

1. What constraint applies to the FASBs consideration of whether to require companies to provide new information?

A. Conservatism

B. Consistency

C. Cost-effectiveness

D. Materiality

2. In what Concepts Statement is that constraint discussed?

A. Concepts Statement No. 6

B. Concepts Statement No. 7

C. Concepts Statement No. 8