The materiality of an item of financial information refers to the likelihood that its omission or misstatement would affect the decisions of those relying on that information and thus make differing choices if the information had been presented. This concept most closely relates to the
A) financial magnitude of the item
B) verifiability of the item
C) neutrality of the item
D) confirmatory value of the item

Question

Quizplus · Accepted Answer

Materiality is primarily concerned with the financial magnitude of an item and its potential impact on decision-making processes, rather than its verifiability, neutrality, or confirmatory value.

The Materiality of an Item of Financial Information Refers to the Likelihood