Which of the Following Is the Primary Basis Used to Decide

question 112

Multiple Choice

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

• A) net sales
• B) net assets
• C) net income before tax
• D) all of the above

---

Definitions:

Phobia

An anxiety disorder marked by a persistent, irrational fear and avoidance of a specific object, activity, or situation.

Panic Disorder

An anxiety disorder marked by unpredictable, minutes-long episodes of intense dread in which a person may experience terror and accompanying chest pain, choking, or other frightening sensations; often followed by worry over a possible next attack.

Unpredictable Episodes

Occurrences or incidents that happen without warning or forecast, often making it difficult to prepare or adjust.

Distress

Negative stress that is associated with anxiety, depression, and other negative emotional states.