Information Is Considered Material If

question 50

Multiple Choice

Information is considered material if:

• A)it would have a bearing on decisions of those who use the financial statements.
• B)there is a substantial likelihood that a reasonable investor would not be concerned about the information.
• C)an item is so insignificant that users would likely ignore it.
• D)the FASB explicitly rules the transaction or item to be material.

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Definitions:

Repetitive Tasks

Tasks that are performed in the same manner, following a set pattern or sequence, with little variation.

Sociopolitical Issues

Topics that involve the interplay between society's political structures and the social norms, values, and issues affecting it.

Capitalism

An economic system based on private ownership of the means of production and their operation for profit, characterized by competitive markets, wage labor, and capital accumulation.

Separation Of Work And Life

The distinction and effort to maintain boundaries between one's professional responsibilities and personal life activities to ensure work demands do not encroach on personal time.