Which of the Following Statement(s)is/are True with Respect to Materiality

question 46

Multiple Choice

Which of the following statement(s) is/are true with respect to materiality?

• A)It refers to the notion that an item need not be recognised in the financial reports.
• B)It is a primary qualitative characteristic.
• C)It relates to financial information where its omission or misstatement could influence the economic decisions of users.
• D)All of the given answers.
• E)Equipment under lease where the risks and rewards flows into the entity and it relates to financial information where its omission or misstatement could influence the economic decisions of users.

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Definitions:

Possessory Interest

A legal right or interest in tangible or intangible property granting the holder physical control or exclusive use.

Estate

An individual's net worth, including all property, assets, and liabilities left behind at death.

Kelo V. City

A landmark Supreme Court case regarding the use of eminent domain to transfer land from one private owner to another to further economic development.

Fifth Amendment

An amendment to the U.S. Constitution that provides several protections for individuals, including the right against self-incrimination and double jeopardy, as well as ensuring due process of law.