The Materiality of an Item of Financial Information Refers to the Likelihood

question 1

Multiple Choice

The materiality of an item of financial information refers to the likelihood that its omission or misstatement would affect the decisions of those relying on that information and thus make differing choices if the information had been presented. This concept most closely relates to the

• A) financial magnitude of the item
• B) verifiability of the item
• C) neutrality of the item
• D) confirmatory value of the item