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:

Labor Force

The total number of people available to work, including both the employed and the unemployed who are seeking employment.

Unemployment Rate

The portion of the labor sector that remains unemployed and is actively job hunting.

Department Of Labor

A governmental department responsible for enforcing labor laws and ensuring safe and fair working conditions for employees.

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to assess price changes associated with the cost of living.