Which One of the Following Statements Best Describes the Concept

question 7

Multiple Choice

Which one of the following statements best describes the concept of materiality?

• A)Materiality is determined by reference to specific quantitative guidelines established by the AICPA.
• B)Materiality depends only on the dollar amount of an item relative to other items in the financial statements.
• C)Materiality depends on the nature of an item but not on the dollar amount of the item.
• D)Materiality is largely a matter of professional judgment.

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Definitions:

Ecstasy

A psychoactive drug known for its stimulant and hallucinogenic effects, also referred to as MDMA.

Brain Damage

Injury to the brain that impairs its functions, potentially resulting from accidents, diseases, or lack of oxygen.

Opiates

A group of drugs derived from opium, used for their pain-relieving properties but are also highly addictive. Examples include morphine and heroin.

Cerebral Cortex

The external covering of the cerebrum in the brain, responsible for intricate brain activities such as thinking, remembering, and awareness.