For Information in Financial Reports to Be Material, It Must

question 22

Multiple Choice

For information in financial reports to be material, it must:

• A)be prepared on a timely basis.
• B)affect the discharge of accountability by management of the reporting entity.
• C)influence the decisions of users of that information.
• D)Both B and C.

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Definitions:

Investment Horizon

The total length of time that an investor expects to hold a portfolio or a specific investment before selling it.

Liquidation Date

The predetermined date on which an investment or venture is terminated, and all assets are liquidated.

Defined Contribution Pension Plan

A retirement plan where both employer and employee contribute to an individual account for the employee, with benefits depending on investment performance.

Bears All The Risk

A term indicating that one party in a transaction is responsible for any financial losses or risks that may arise, commonly used in insurance and investment contexts.