If the FASB's Proposed Definition of Materiality as a Legal

question 32

Multiple Choice

If the FASB's proposed definition of materiality as a legal concept is adopted the most likely outcome is

• A) It will have little impact on the number of items classified as material
• B) It will lower the threshold for recognizing event and transactions as material
• C) It will raise the threshold for recognizing event and transactions as material
• D) Its impact cannot be determined

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Definitions:

Stored File

A digital document or data that has been saved on a storage medium, such as a hard drive or cloud server.

Access

The ability, right, or permission to approach, enter, speak with, or use; admittance.

Thrashing

A condition of excessive paging in which the operating system becomes sluggish.

Problem

An obstacle, issue, or difficulty that needs to be solved or overcome.