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29 Sep 2019
our aunt recently received the annual report for a company inwhich she has invested. The report notes that the statements havebeen prepared in accordance with "Generally Accepted AccountingPrinciples." She has also heard that certain terms have specialmeanings in accounting relative to everyday use. She would like youto explain the meaning of terms she has come across related toaccounting.
How is "Materiality" defined in the conceptual framework?
A. The Conceptual Framework defines materiality as fivepercent.
B. Materiality is strictly a quantitative characteristic ofaccounting information
C. Materiality and relevance are both defined in terms of whatinfluences or makes a difference to a decision maker
D. None of these are correct
our aunt recently received the annual report for a company inwhich she has invested. The report notes that the statements havebeen prepared in accordance with "Generally Accepted AccountingPrinciples." She has also heard that certain terms have specialmeanings in accounting relative to everyday use. She would like youto explain the meaning of terms she has come across related toaccounting.
How is "Materiality" defined in the conceptual framework?
| A. | The Conceptual Framework defines materiality as fivepercent. | |
| B. | Materiality is strictly a quantitative characteristic ofaccounting information | |
| C. | Materiality and relevance are both defined in terms of whatinfluences or makes a difference to a decision maker | |
| D. | None of these are correct |
Nelly StrackeLv2
29 Sep 2019
