The practice by Woolworths Ltd of presenting their financial statements in millions of dollars is an application of the concept of:
A) relevance
B) materiality
C) understandability
D) prudence.

Question

Quizplus · Accepted Answer

The practice of presenting financial statements in millions of dollars is an application of the materiality concept, which requires that financial information is reported if it could influence the economic decisions of users. Presenting financial statements in millions of dollars condenses the information and makes it easier for users to understand.

The Practice by Woolworths Ltd of Presenting Their Financial Statements