Which of the following is the primary basis used to decide materiality for a for-profit entity?
A)Net sales
B)Net assets
C)Net income before tax
D)All of the above

Question

Quizplus · Accepted Answer

Net income before tax is commonly used as the primary basis for determining materiality in a for-profit entity because it reflects the entity's profitability, which is a key concern for stakeholders.

Which of the Following Is the Primary Basis Used to Decide