Misstatements Must Be Compared with Some Measurement Base Before a Decision

question 41

Multiple Choice

Misstatements must be compared with some measurement base before a decision can be made about the materiality of the failure to follow accounting standards.A commonly accepted measurement base is:

• A) profit.
• B) total assets.
• C) current assets.
• D) all of the above

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Definitions:

International Organization

A body that operates across national borders, focusing on global and regional issues, including economic, social, or environmental matters.

Global Reporting Initiative

An international organization that develops and encourages the use of sustainability reporting standards.

CSR Initiative

Corporate Social Responsibility initiative; a company's efforts to improve society in ways that go beyond the interests of the firm and that are not required by law.

Social Performance

A measure of how well an organization achieves social goals, such as community support and employee satisfaction.