Which of the Following Statements Is Correct Regarding the Quantitative

question 7

Multiple Choice

Which of the following statements is correct regarding the quantitative guidelines for materiality in AASB 1031?

• A)if the particular item is equal to or greater than 20% of the appropriate base amount,it would be presumed to be material unless there is evidence or convincing argument to the contrary
• B)amounts equal to or greater than 5% of the base amount would be presumed to be material unless there is evidence or convincing argument to the contrary
• C)if the particular item is less than 10% of the appropriate base amount,it would be presumed to be material unless there is evidence or convincing argument to the contrary
• D)if the particular item is equal to or greater than 10% of the appropriate base amount,it would be presumed to be material unless there is evidence or convincing argument to the contrary

---

Definitions:

Confidence Interval

A continuum of values from statistical sample analyses, speculated to contain the value of a population parameter that is not known.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists between certain characteristics of a population or data set.

Level Of Significance

The probability criterion used for rejecting the null hypothesis, a critical boundary for determining statistical significance in testing.

Level Of Significance

A threshold in hypothesis testing that determines whether the null hypothesis can be rejected.