A Misstatement in the Financial Statements Can Be Considered Material

question 37

Multiple Choice

A misstatement in the financial statements can be considered material if knowledge of the misstatement will affect a decision of

• A) the PCAOB.
• B) a reasonable user of the financial statements.
• C) an accountant.
• D) the SEC.

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Definitions:

Head Start

An endeavor in the US focused on providing children from underprivileged backgrounds and their families with wide-ranging services in early childhood education, health, nutrition, and fostering parental participation.

Numeric Units

Symbols or numbers that represent specific quantities and are used in measurements to define magnitude, quantity, or dimensions.

Instructional Discourse

A distinctive way of talking and thinking that is typical in school but rarely encountered in everyday interactions in the community or home.

Perry Preschool Program

An early childhood education program aimed at improving the cognitive and social development of preschool-aged children from low-income families.