Based on professional judgment an accountant decides that if the amount of an asset is more than 2% of total assets, it is considered as material. Assume that the company spent OMR 1,500 on cash counting machine. The total assets of the company are OMR 100,000. Can the cash counting machine be considered as material item? a. No, it is not considered as material b. None of the options c. Unable to decide as the data is inadequate d. Yes, it is considered as material
Based on professional judgment an accountant decides that if the amount of an asset is more than 2% of total assets, it is considered as material. Assume that the company spent OMR 1,500 on cash counting machine. The total assets of the company are OMR 100,000. Can the cash counting machine be considered as material item? a. No, it is not considered as material b. None of the options c. Unable to decide as the data is inadequate d. Yes, it is considered as material
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Based on professional judgment an accountant decides that if the amount of an asset is more than 2% of total assets, it is considered as material. Assume that the company spent OMR 1,500 on cash counting machine. The total assets of the company are OMR 100,000. Can the cash counting machine be considered as material item?
a.
No, it is not considered as material
b.
None of the options
c.
Unable to decide as the data is inadequate
d.
Yes, it is considered as material
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