Most Practitioners Allocate the Preliminary Judgement About Materiality to Balance

question 78

True/False

Most practitioners allocate the preliminary judgement about materiality to balance sheet accounts rather than income statement accounts.

---

Definitions:

Balance Sheet

A financial statement that represents a company's assets, liabilities, and shareholders' equity at a specific point in time.

Specific Date

A distinct, precisely identified day on the calendar specified for a particular event or deadline.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period.

Cash Investments

Money put into financial instruments or assets with the expectation of achieving a profit.