An Item Would Be Considered Material and Therefore Would Be

question 36

Multiple Choice

An item would be considered material and therefore would be disclosed in the financial statements if the

• A) expected benefits of disclosure exceed the additional costs.
• B) impact on earnings is greater than 3 percent.
• C) FASB definition of materiality is met.
• D) omission of misstatement of the amount would make a difference to the users.

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Definitions:

Psychosocial Development

Erik Erikson's theory that personality develops in a predetermined order through eight stages of psychosocial development from infancy to adulthood.

Personality Theorists

Scholars or researchers who study and develop theories about the psychological patterns that characterize an individual's distinctive thoughts, feelings, and behaviors.

Male-dominated Culture

A societal structure where males hold primary power and predominate in roles of political leadership, moral authority, social privilege, and control of property.

Female Inferiority

A disproved and sexist belief system asserting that women are naturally less important, intelligent, or capable than men.