For information in financial reports to be material, it must:
A)be prepared on a timely basis.
B)affect the discharge of accountability by management of the reporting entity.
C)influence the decisions of users of that information.
D)Both B and C.

Question

Quizplus · Accepted Answer

In order for information in financial reports to be considered material, it must affect the discharge of accountability by management of the reporting entity and influence the decisions of users of that information. Simply being prepared on a timely basis is not enough to make the information material. Therefore, choice D, which includes both B and C, is the best answer.

For Information in Financial Reports to Be Material, It Must