Information Is Considered Material If

question 50

Multiple Choice

Information is considered material if:

• A)it would have a bearing on decisions of those who use the financial statements.
• B)there is a substantial likelihood that a reasonable investor would not be concerned about the information.
• C)an item is so insignificant that users would likely ignore it.
• D)the FASB explicitly rules the transaction or item to be material.

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Definitions:

Autonomic

Pertaining to the autonomic nervous system that controls involuntary bodily functions such as heartbeat and digestion.

Nervous System

The network of nerve cells and fibers that transmits signals between different parts of the body, coordinating actions and sensory information.

Brain-Damaged Patients

Individuals who have experienced injury to the brain, which can result in a wide range of impairments in cognitive function, motor skills, and emotional behavior.

Emotional Intelligence

A capacity for recognizing our own feelings and those of others, for motivating ourselves, and for managing emotions well in ourselves and in our relationships.