Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

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The Concept of Materiality
The concept of materiality is one of the most basic principles underlying financial accounting.
a.nswer the following questions:
1.hy is the materiality of a transaction or an event a matter of professional judgment
2.hat criteria should accountants consider in determining whether a transaction or an event is material
3.oes the concept of materiality mean that financial statements are not precise, down to the last dollar Does this concept make financial statements less useful to most users
b.vis Rent-a-Car purchases a large number of cars each year for its rental fleet.he cost of any individual automobile is immaterial to Avis, which is a very large corporation.ould it be acceptable for Avis to charge the purchase of automobiles for its rental fleet directly to expense, rather than to an asset account Explain