Which of the Following Is an Example of Using the Materiality

question 159

Multiple Choice

Which of the following is an example of using the materiality concept?

• A)recording significant purchases as assets even though technically they are considered expenses
• B)recording insignificant purchases as expenses even though technically they are considered assets
• C)not recording insignificant purchases at all
• D)recording insignificant liabilities as assets

---

Definitions:

Response Variable

The outcome variable of interest in a study or experiment, which is hypothesized to depend on one or more independent variables.

Boxplot

A graphical representation used in statistics to show the distribution of numerical data and highlight the mean, median, quartiles, and outliers.

Influential Points

Data points that have a disproportionately large effect on the results of a statistical analysis, potentially skewing the analysis.

Scatterplot

A graphical representation where individual data points are plotted on a two-dimensional plane, showcasing the relationship between two variables.