Net income before taxes is the normal base used to determine materiality for a not-for-profit organization.

Name: Net income before taxes is the normal base used to determine materiality for a not-for-profit organization.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

For a not-for-profit organization, net income before taxes is not a relevant measure since these entities do not operate for profit. Materiality is often determined based on revenue, expenses, net assets, or the nature of the transaction.

Net Income Before Taxes Is the Normal Base Used to Determine