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:

Liberty

A fundamental principle signifying freedom from oppressive restrictions imposed by authority on one's way of life, behavior, or political views.

Federal Government

A system in which power is divided between a national (federal) government and various regional governments.

Largest Employer

The individual organization or entity that employs the highest number of workers in a given area, sector, or country.

Minority Rights

Minority rights are the normal individual rights as applied to members of racial, ethnic, class, religious, linguistic, or sexual minorities; and also the collective rights accorded to minority groups.