The Concept of Materiality (Indicate All Correct Answers)

question 76

Multiple Choice

The concept of materiality (indicate all correct answers) :

• A) Requires that financial statements are to be accurate to the nearest dollar, but need not show cents.
• B) Is based upon what users of financial statements are thought to consider important.
• C) Permits accountants to ignore other generally accepted accounting principles in certain situations.
• D) Permits accountants to use the easiest and most convenient means of accounting for events that are immaterial.

---

Definitions:

Eating

The act of consuming food to provide nutritional support for the body.

Displacement

In psychology, a defense mechanism where an individual redirects emotional feelings from their original source to a substitute target.

Behaviour

The way an individual acts or responds when faced with external or internal triggers.

Anger

A strong feeling of displeasure or hostility, often arising in response to perceived wrong or injustice.