As a Rule of Thumb Which of the Following Items

question 34

Multiple Choice

As a rule of thumb which of the following items would be considered immaterial?

• A)An item greater than 10 per cent of profit before tax.
• B)An item greater than 1 per cent of total assets.
• C)An item greater than 2 per cent of equity.
• D)None of the above.

---

Definitions:

Inflation

The velocity of rise in the aggregate pricing of goods and services, reducing the power of the dollar.

Dividends

Regular payments declared by a company's board of directors and given to its shareholders from the company's earnings.

Standard Deviation

A statistical measure of the dispersion or variability in a dataset, signifying the degree to which individual observations differ from the mean value.

Returns

A term referring to the profit or loss generated on an investment over a specified period.