Vidyalelo
Commerce · Q150

Accounting

Graduate and Post Graduate · Commerce · question 150

Q150

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

Answer: Option D

Solution

Answer: Option D
Solution:
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.