Which of the Following Phrases or Terms Regarding Materiality Is

question 68

Multiple Choice

Which of the following phrases or terms regarding materiality is used by the Supreme Court of the United States and is not found in FASB Concepts Statement No.2?

• A)"amount of a misstatement or omission"
• B)"in light of surrounding circumstances"
• C)"probable that the judgement of a reasonable person"
• D)"significantly altered the total mix of information available"

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Definitions:

Plumbing Materials

Supplies and fixtures used in the installation, maintenance, and repair of water and drainage systems in buildings.

Electronic Record

Digital information that is recorded and stored in a form usable by a computer; it can include texts, images, data, or any other information in digital format.

Repossess

The process by which a lender takes back property from the borrower due to failure in making the agreed payments.

Suretyship Provision

A clause in a contract that involves a third party (surety) who agrees to fulfill the obligations of the debtor if the debtor fails to do so.