When Assessing the Materiality of a Bad Debtor,the Accountant of Azad

question 16

Multiple Choice

When assessing the materiality of a bad debtor,the accountant of Azad Limited concluded that in conformity with guidelines provided in AASB 1031 Materiality,it was not likely to be material as it:

• A)was more than 12% but less than 20% of total equity
• B)was more than 10% but did not exceed 50% of total bad debtors for the period;
• C)was less than 5% of total bad debtors for the reporting period;
• D)did not affect the cash flows for the period.

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Performance of a machine, process, or system that deviates from normal or expected functioning due to errors or defects.

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