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

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Definitions:

Poverty

A socio-economic condition characterized by a lack of financial resources and access to basic needs necessary for living.

Economic Pressures

Economic pressures refer to the various financial strains and stresses that individuals, families, businesses, and governments face due to factors such as inflation, unemployment, and high costs of living.

Nonwhite Families

Families that do not identify as white and may experience different social, economic, and political realities due to racial and ethnic identity, often facing systemic barriers and discrimination.

Repatriations

The process of returning a person or a group of people to their home country or place of origin, often used in the context of returning cultural artifacts or compensating exploited individuals or communities.