Which of the Following Is True of a Material Fact

question 34

Multiple Choice

Which of the following is true of a material fact?

• A) It means to act knowingly and with a specific intent to deceive someone, ordinarily for financial gain or causing financial loss to that person.
• B) It is a plan or a program designed to take from a person the tangible right of honest services.
• C) It is important to a reasonable person in deciding whether or not to engage in a particular transaction.
• D) It can be a defense to a contract and can also form the basis of a civil tort action.
• E) It is a statement or representation that is known to be untrue or is made with reckless indifference as to its truth or falsity.

---

Definitions:

Ending Work in Process

This refers to the goods that are still in the production process at the end of an accounting period but have not yet been completed.

Total Units

The aggregate quantity of units produced, held in inventory, or sold by a business.

Transferred Out

In cost accounting, refers to the cost of goods or inventory items that have been moved from one production process or department to another.

Units Transferred Out

In process costing, the term refers to the number of units moved from one production department to the next, or to the completed goods inventory.