An Error Is Considered to Be a Material Error If

question 76

True/False

An error is considered to be a material error if the error in the accounting information could have an impact on an investor's or creditor's decision.

---

Definitions:

Safeguard

Measures or actions taken to protect against hazards, loss, or other unwanted outcomes.

Carwash

A facility used for cleaning the exterior, and sometimes also the interior, of motor vehicles.

Act Of God

An event caused by natural forces beyond human control, such as floods, earthquakes, or hurricanes, that cannot be prevented or predicted.

Bailed Property

Property given to someone (bailee) for safekeeping under a bailment agreement, where the physical possession but not the ownership of the property is transferred.