Which of the following is least likely to render a quantitatively small misstatement material? A)Affects the registrant's compliance with regulatory requirements. B)Masks a change in earnings or other trends. C)Arises from an item not capable of precise measurement. D)The transaction involves a related party.

Question

Quizplus · Accepted Answer

A misstatement arising from an item not capable of precise measurement is typically not material because it is not considered quantitatively significant enough to affect users' decisions. In contrast, options A, B, and D are more likely to be material because they directly impact users' decision-making abilities.

Which of the Following Is Least Likely to Render a Quantitatively