Information about an item is _______ if its ommission or misstatement might influence the financial decision of the users taken on the basis of that information
A. Concrete
B. Complete
C. Immaterial
D. Material
Answer: Option D
Solution(By Examveda Team)
Materiality is a concept in financial accounting and reporting that firms may disregard trivial matters, but they must disclose everything that is important to the report audience. Items that are important enough to matter are material items.Join The Discussion
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Related Questions on Accounting
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
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Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
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Materiality is an accounting principle that states that all items that are reasonably likely to impact investors' decision-making must be recorded or reported in detail in a business's financial statements using GAAP or applicable standards.
The concept of materiality works as a filter through which management sifts information. Its purpose is to make sure that the financial information that could influence investors' decisions is included in the financial statements is true.
PLEASE EXPLAIN
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