A Misstatement in the Financial Statements Can Be Considered Material

question 27

Multiple Choice

A misstatement in the financial statements can be considered material if

• A) it overshadows the financial statements as a whole.
• B) knowledge of the misstatement would affect the decision of a reasonable user of the statements.
• C) it affects more than one account on the statements.
• D) it affects only one account on the statements.