Since Materiality Is Relative,it Is Necessary to Have Benchmarks for Establishing

question 27

Multiple Choice

Since materiality is relative,it is necessary to have benchmarks for establishing whether misstatements are material.Normally,the most important base for deciding what is material,because it is regarded as a critical item of current period information for users,is

• A)total assets.
• B)net income.
• C)net working capital.
• D)net income before taxes.

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Definitions:

ATP Synthase

An enzyme located in the membrane of mitochondria that helps in the synthesis of ATP (adenosine triphosphate) from ADP and phosphate during cellular respiration.

Hydrogen Ions

Positively charged ions of hydrogen, crucial in determining the acidity or alkalinity of solutions.

Diagram

A simplified drawing showing the appearance, structure, or workings of something, typically used for explanation purposes.

Space

The vast, seemingly infinite expanse that exists beyond Earth's atmosphere, consisting of other celestial bodies, stars, and galaxies.