In accounting, the concept for whether information is large enough to matter is
A) Representational faithfulness
B) Timeliness
C) Consistency
D) Materiality

Question

Quizplus · Accepted Answer

Materiality is the concept in accounting that states whether the information is large enough to matter and can influence decisions. Representational faithfulness refers to the accuracy of reporting, timeliness is the relevance of the information at the current time, and consistency refers to the uniformity of reporting methods over time. While all of these concepts are important in accounting, only materiality addresses the specific question of whether information is significant enough to affect decision-making.

In Accounting, the Concept for Whether Information Is Large Enough