Which of the Following Statements Is Not Correct

question 94

Multiple Choice

Which of the following statements is not correct?

• A) Materiality is a relative rather than an absolute concept.
• B) The most important base used as the criterion for deciding materiality is total assets.
• C) Qualitative factors as well as quantitative factors affect materiality.
• D) Given equal dollar amounts, frauds are usually considered more important than errors.

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Definitions:

TAM, SAM, SOM

stands for Total Addressable Market, Serviceable Available Market, and Service Obtainable Market, respectively, and they are metrics used to estimate the potential market size and revenue opportunity for a product or service.

Disposable Income

The amount of income left to an individual after taxes have been paid, available for spending, saving or investing.

Product Application

Goods or services created to meet a demand, thereby providing a solution to a customer problem.

Market Demand

The total volume of a product or service desired by consumers at a particular price and time.