Information Is Material If Its Omission,misstatement or Non-Disclosure Has the Potential,individually

question 44

Multiple Choice

Information is material if its omission,misstatement or non-disclosure has the potential,individually or collectively to:

• A)affect the discharge of accountability by the governing body of the entity.
• B)be greater than 1% of the total assets of the entity.
• C)influence management to make decisions that will affect users of the financial report.
• D)present the financial report in a 'true and fair' manner.

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Definitions:

Future Value

The estimated value of a current asset or an amount of money at a specified date in the future, based on an assumed rate of growth or interest.

Interest Component

The portion of a payment that is attributed to interest on borrowed capital.

Compounded Annually

An interest calculation method where the interest is added to the principal at the end of each year, and future interest accrues on the new principal.

Accumulated

This term often refers to the total amount of something gathered over time, such as accumulated depreciation or accumulated earnings.