Misstatements must be compared with some measurement base before a decision can be made about the materiality of the failure to follow accounting standards. A commonly accepted measurement base would be:
A) current assets.
B) total assets.
C) profit.
D) all of the above

Question

Quizplus · Accepted Answer

Materiality is often assessed in relation to various measurement bases such as current assets, total assets, and profit, depending on the context and the financial statement elements affected.

Misstatements Must Be Compared with Some Measurement Base Before a Decision