An item is considered material if
A)it does not cost a lot of money.
B)it is of a tangible good.
C)its size is likely to influence the decision of an investor or creditor.
D)the cost of reporting the item is greater than its benefits.

Question

Quizplus · Accepted Answer

Materiality is determined by whether the size or nature of an item is likely to influence the decision of an investor or creditor, not by its cost, tangibility, or reporting cost.

An Item Is Considered Material If