For a Misrepresentation to Be Material,it Must Be Likely to Induce

question 72

True/False

For a misrepresentation to be material,it must be likely to induce a reasonable person to manifest assent or the maker must know that it would be likely to induce the recipient to do so.

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Definitions:

Sensitivity Analysis

An approach to assess how different values of an independent variable affect a specific dependent variable under a given set of assumptions.

CVP Analysis

Cost-Volume-Profit Analysis, a tool that helps managers understand the relationship between cost, volume, and profit by identifying the break-even point or targeted profit output.

Breakeven Chart

A graphical representation that shows when total cost and total revenue are expected to be equal, indicating no net loss or gain.

Cost-Volume-Profit

Analysis that examines the effects of changes in costs and volume on a company's profit.