Information That Is Material Means That an Error or Alternative

question 3

Multiple Choice

Information that is material means that an error or alternative method of handling a transaction

• A)would possibly affect the judgment of someone relying on the financial statements.
• B)would not affect the decisions of users.
• C)might cause a company to understate its earnings for the accounting period.
• D)could increase the profitability of a company.

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Definitions:

Diffusion Of Responsibility

A phenomenon where individuals are less likely to take action or feel a sense of responsibility in the presence of a large group of people.

In-Group

A social group with a strong sense of togetherness, from which others are excluded.

Identifies

Recognizes, categorizes, or associates something as being a particular type or belonging to a specific group.

Prejudice

Attitudes (usually negative) toward others based on their gender, religion, race, or membership in a particular group.