The Concept of Materiality

question 72

Multiple Choice

The concept of materiality:

• A)Involves only tangible assets and not intangible assets.
• B)Relates only to the income statement and not the balance sheet.
• C)Is always an exact percentage of a financial account balance.
• D)Is measured as an item significant enough to influence the decisions of users of financial statements.

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Definitions:

Self-appraisal

The process of evaluating one's own behavior, abilities, and qualities, often in relation to certain standards or expectations.

Narcissism

A personality trait characterized by an excessive preoccupation with oneself and a lack of empathy for others.

Self-esteem

The subjective evaluation or perception of one's own worth or value.

Self-discrepancy Theory

A psychological theory that explains how differences between individuals' actual, ideal, and ought selves can impact their emotional states.