Which of the Following Items Would Most Likely Be a Violation

question 40

Multiple Choice

Which of the following items would most likely be a violation of the materiality constraint?

• A) A company did not separately report an unusual gain of $100,000. Its income from operations was $20,000,000.
• B) A company having reported total assets of $50,000,000 immediately expensed the purchase of 20 pencil sharpeners that have an estimated useful life of three years.
• C) A $75,000 illegal bribe by an executive of the company to a foreign official was not separately disclosed in the annual report.
• D) A $2,000 expenditure to improve a building that originally cost $10,000,000 was immediately expensed.

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Definitions:

Mobile Genetic Elements

DNA sequences that can change their position within the genome, contributing to genetic diversity and evolution.

Fitness

In evolutionary terms, the relative success of an organism in passing its genes to the next generation compared to other members of the population.

Tongue Length

A physical measurement that varies among individuals and species, affecting feeding, speech, and other behaviors.

Long-Tongued Flies

A term referring to a variety of fly species known for their elongated proboscis, used for feeding from deep flowers.