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:

European Crop Failures

Periods when agricultural production in Europe significantly declined due to natural conditions, affecting food supplies and economies.

Lucrative

Refers to a venture or activity that is highly profitable.

Slave Trade

The historical practice of trading in enslaved people, particularly prevalent across the Atlantic Ocean from the 16th to the 19th centuries.

Sugar Trade

The global industry centered around the cultivation, processing, and sale of sugar, historically linked to the transatlantic slave trade and colonial exploitation.