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:

Abstractness

The quality of being abstract; not related to physical or concrete reality but instead involving complex or theoretical concepts.

Stringed Instrument

A musical instrument that produces sound through vibrating strings.

Musical Instrument

A device designed to produce musical sounds by the manipulation of its various parts, often involving keyboard, string, percussion, wind, or electronic means.

Electric Guitar

A stringed musical instrument that uses electromagnetic pickups to convert the vibration of its steel-cored strings into electrical signals, which can then be amplified.