In Deciding Whether an Error or Omission Is Material,it Is

question 12

Multiple Choice

In deciding whether an error or omission is material,it is usually necessary to consider:

• A) the size of the error or omission
• B) the nature of the account which is the subject of the error or omission
• C) both A and B
• D) none of the above

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Definitions:

Perpetual Inventory System

An approach to inventory management where inventory levels are updated in real-time following each sale or purchase.

Sales Return

Goods returned by the customer to the seller after the sale, leading to a reversal of revenue recorded.

Collection

Collection involves the process of gathering or receiving payments, funds, or necessary documents, especially in the context of business receivables or debts.

Perpetual Inventory System

Inventory accounting method where transactions are instantly recorded via computerized point-of-sale systems and enterprise asset management software.