Which of the Following Is Most Likely to Be Considered

question 15

Multiple Choice

Which of the following is most likely to be considered "material," even if the amounts involved are small?

• A) Amounts that cause an upward earnings trend to become even larger
• B) Amounts that cause an earnings trend to swing from slightly positive to slightly negative
• C) Amounts that cause reported Gross Profit to be larger than Net Income
• D) Amounts that mask a retailer's inability to control its Cost of Goods Sold

---

Definitions:

Confirmation Bias

The tendency to process information by looking for, or interpreting, information that is consistent with one’s existing beliefs.

Sounding Board

An individual or group used to test ideas or concepts to gauge their validity or effectiveness before public release.

Middle Ages

A historical period in Europe stretching from the 5th to the late 15th century, characterized by feudalism, the spread of Christianity, and the emergence of the Renaissance in Italy.

European History

The study of past events and developments on the European continent, including its cultures, nations, and political establishments.