In Order to Decide If an Item Is Material Accountants

question 38

Multiple Choice

In order to decide if an item is material accountants must use:

• A) professional judgement.
• B) a set of rules.
• C) a text book.
• D) discipline.

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Definitions:

Forward Contract

A customizable financial contract between two parties to buy or sell an asset at a specified future date and price.

Accounts Receivable

The amounts owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Swiss Francs (CHF)

The currency of Switzerland, widely recognized for its stability and being a safe-haven currency in times of financial uncertainty.

Non-monetary Item

Assets or liabilities not requiring future cash settlements, not directly affected by inflation or deflation, such as intangible assets.