Which of the Following Statements Concerning Materiality Is True

question 101

Multiple Choice

Which of the following statements concerning materiality is true?

• A)Generally accepted accounting principles are violated if estimates are used in end-of-period adjustments.
• B)Each year the Financial Accounting Standards Board (FASB)publishes the dollar amount considered "material" for each industry.
• C)Immaterial items should be handled in the most expedient manner,even if resulting financial statements are not completely precise.
• D)Accountants should not waste time and money in recording transactions involving small dollar amounts.

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Definitions:

Retina

The light-sensitive layer of tissue at the back of the eye, responsible for converting light into neural signals for vision.

Blindness

The condition of lacking visual perception due to physiological or neurological factors.

Blind Spot

An area of the visual field that lacks detection due to the absence of photoreceptor cells in the part of the retina where the optic nerve exits the eye.

Optic Nerve

Twin nerves that convey sight-related information from the retina to the brain.