Which of the Following Statement(s)is/are True with Respect to Materiality

question 46

Multiple Choice

Which of the following statement(s) is/are true with respect to materiality?

• A)It refers to the notion that an item need not be recognised in the financial reports.
• B)It is a primary qualitative characteristic.
• C)It relates to financial information where its omission or misstatement could influence the economic decisions of users.
• D)All of the given answers.
• E)Equipment under lease where the risks and rewards flows into the entity and it relates to financial information where its omission or misstatement could influence the economic decisions of users.

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Definitions:

Self-fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true due to positive feedback between belief and behavior.

Multiaxial Diagnosis

A classification scheme used in the Diagnostic and Statistical Manual of Mental Disorders (DSM) that assesses different aspects of an individual's health or disorder across multiple axes or domains.

Uniformity Myth

The belief that all members of a group are the same, ignoring individual differences.

Meta-analyses

Statistical methodologies that combine the results of multiple scientific studies to arrive at a conclusion that has more statistical power than individual studies.