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:

Sales

The total amount of goods or services sold by a company, constituting its main source of revenue.

Accounts Receivable Period

The average number of days it takes for a business to collect payments from its credit sales.

Collect

To gather or accumulate money or assets from various sources, often including outstanding debts or payments.

Estimated Quarterly Sales

Predictions or projections of the sales volume a company expects to achieve in a quarter.