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Information about an item is if its ommission or misstatement might...

This question belongs to Commerce Accounting
Accounting
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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

Answer & Solution
Correct Answer: Option D
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.
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3 Comments
Shahbaz Ali
Shahbaz Ali 5 years ago
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.
Mahmood Alam
Mahmood Alam 8 years ago
PLEASE EXPLAIN
Umme Ara
Umme Ara 8 years ago
How ? Can you explain plzz
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