Bases are needed for evaluating materiality. What base would you use for the Balance Sheet?

Question

Quizplus · Accepted Answer

Total assets provide a more comprehensive base for materiality evaluation as it includes all assets, both current and non-current. Current liabilities and current assets may be useful bases for specific materiality assessments, but total assets should be the primary base for the balance sheet. Operating profit before income tax is not a relevant base for evaluating materiality on the balance sheet.

Bases Are Needed for Evaluating Materiality