Which of the Following Is the Primary Basis Used to Decide

question 31

Multiple Choice

Which of the following is the primary basis used to decide materiality for a for-profit entity?

• A)Net sales
• B)Net assets
• C)Net income before tax
• D)All of the above

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Definitions:

Consumption

The use of goods and services by households, which is a key component in calculating a country's Gross Domestic Product (GDP).

Fiscal Policy Measure

Government policies related to taxation and spending that are used to influence the economy, manage inflation, and stimulate economic growth.

Legislative Action

The process by which a legislative body enacts laws, including the proposal, debate, amendment, and voting on new laws or changes to existing laws.

President

The head of state and/or head of government in a republic, typically elected to be the chief executive officer and hold the highest office in the land.