Materiality Is Based Upon Which Factor(s)

question 4

Multiple Choice

Materiality is based upon which factor(s) ?

• A)Timeliness of an item.
• B)Amount and nature of an item.
• C)Consistency of an item.
• D)Relevance of an item.

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Definitions:

Annual Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business during a given fiscal year.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project, calculated as the difference between the present value of cash inflows and outflows over a period of time.

Yearly Cash Inflows

The total amount of money received by a company over a year, from various sources including sales, investments, and financing.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of a retirement strategy.