When Allocating Materiality, Most Practitioners Choose to Allocate To

question 103

Multiple Choice

When allocating materiality, most practitioners choose to allocate to:

• A) the income statement accounts because they are more important.
• B) both balance sheet and income statement accounts because there could be errors on either one.
• C) all of the financial statements because there could be errors on other statements besides the income statement and balance sheet.
• D) the balance sheet accounts because there are fewer of them.

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Definitions:

Land Plants

Organisms that are part of the kingdom Plantae, characterized by their ability to perform photosynthesis and live predominantly on land.

Causal Organism

A pathogen or microorganism that causes disease or illness in its host.

Protozoa

An informal group of unicellular, animal-like protists, including amoebas, foraminiferans, actinopods, ciliates, flagellates, and apicomplexans. (The adjectival form is protozoan.)

Means of Transmission

The way in which diseases, pathogens, or information is spread from one individual or place to another.