Which of the Following Statements About Materiality Is Not Correct

question 17

Multiple Choice

Which of the following statements about materiality is not correct?

• A)An item must make a difference or it need not be disclosed.
• B)Materiality is a matter of relative size or importance.
• C)An item is material if its inclusion or omission would influence or change the judgment of a reasonable person.
• D)All of these are correct statements about materiality.

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Definitions:

Deductive Argument

An argument that attempts to show that its conclusion makes explicit the information implicit in the premises, so that the conclusion must be true if the premises are.

Alarm

A device or mechanism designed to warn or alert individuals of potential danger or the need for immediate attention.

Perfect Scores

The highest possible marks achievable in a test or evaluation, indicating flawless performance.

Inductive Argument

An argument that attempts to show that its conclusion is supported by the premises even though the conclusion amplifies—it goes beyond—what the premises state.