An Item Is Considered to Be Material If

question 53

Multiple Choice

An item is considered to be material if

• A) the assets would be larger than the liabilities.
• B) the information would change an investor's mind.
• C) the company has a loss.
• D) the company has never paid a dividend.

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Definitions:

Positive Statement

A statement that can be tested and validated; it describes what is and not what should be.

Federal Government

The national government of a federal republic, which possesses certain powers at the national level while other powers are shared with or reserved for the states.

Interest Rates

The percentage charged on a loan or paid on savings, effectively the price of capital.

Microeconomics

The study of economic behavior and decision-making by individuals and firms, focusing on the mechanisms that govern the allocation of resources.