Which of the Following Exemplifies "Materiality" as the Term Is

question 47

Multiple Choice

Which of the following exemplifies "materiality" as the term is used in the FASB conceptual framework?

• A)BCC Corporation purchased a $30 wastebasket with an expected useful life of 10 years.BCC charged the entire cost to expense in the period incurred.
• B)Reported account balances in DPT Corporation's financial statements are rounded to the nearest whole dollar.
• C)Both BCC Corporation purchased a $30 wastebasket with an expected useful life of 10 years.BCC charged the entire cost to expense in the period incurred and reported account balances in DPT Corporation's financial statements are rounded to the nearest whole dollar.
• D)Neither BCC Corporation purchased a $30 wastebasket with an expected useful life of 10 years.BCC charged the entire cost to expense in the period incurred nor reported account balances in DPT Corporation's financial statements are rounded to the nearest whole dollar.

---

Definitions:

Beliefs

Convictions or acceptances that something exists or is true, especially without empirical evidence.

Communication Model

A theoretical framework that outlines how messages are transmitted and received between senders and receivers, including components like encoding, medium, decoding, and feedback.

Persuasion

Engaging in activities aimed at altering a person's opinions, emotions, or conduct through persuasive discourse, rationalization, or attraction.

Attribution

Attribution is the process of inferring the causes behind behaviors and events, leading to an understanding of why things happen.