Accountants Must Use _________________When Deciding If an Item Is Material

question 59

Multiple Choice

Accountants must use _________________when deciding if an item is material.

• A) a set of rules.
• B) a text book.
• C) professional judgement.
• D) the code of conduct.

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Definitions:

Government-operated Firms

Businesses owned and managed by a government in order to provide goods or services to the public.

Economic Efficiency

An arrangement whereby resources are utilized in the most efficient way to increase the output of goods and services at the minimum possible cost.

Monopoly Power

The ability of a single entity or company to control or dominate a particular market, often leading to higher prices and reduced competition.

Oligopolists

Firms or entities within an industry where a small number control the majority of the market share, often leading to limited competition.