In Determining Whether an Item Is Material, Consideration Must Be

question 41

Multiple Choice

In determining whether an item is material, consideration must be given to:

• A) its size only.
• B) both its size and nature.
• C) its nature only.
• D) none of the above.

---

Definitions:

Credit Terms

The payment terms and conditions agreed upon by the buyer and seller, detailing the time period in which the buyer must pay the seller for the goods or services received.

Merchandise

Goods that are purchased, held, and resold by a business in the normal course of its operations.

Discount Offered

A reduction applied to the regular price of goods or services as a form of promotion or negotiation.

Sales Discount

A reduction in the price of goods or services offered to customers, usually as an incentive for prompt payment.