The concept of materiality (indicate all correct answers):a. Requires that financial statements be accurate to thenearest dollar, but need not show cents.b. Is based upon what users of financial statements arethought to consider important.c. Permits accountants to ignore generally acceptedaccounting principles in certain situations. d. Permits accountants to use the easiest and most conve-nient means of accounting for events that are immaterial.
The concept of materiality (indicate all correct answers):a. Requires that financial statements be accurate to thenearest dollar, but need not show cents.b. Is based upon what users of financial statements arethought to consider important.c. Permits accountants to ignore generally acceptedaccounting principles in certain situations. d. Permits accountants to use the easiest and most conve-nient means of accounting for events that are immaterial.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The concept of materiality (indicate all correct answers):
a. Requires that financial statements be accurate to the
nearest dollar, but need not show cents.
b. Is based upon what users of financial statements are
thought to consider important.
c. Permits accountants to ignore generally accepted
accounting principles in certain situations.
d. Permits accountants to use the easiest and most conve-
nient means of accounting for events that are immaterial.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education