From a definitional perspective, information is considered material if it _______.
A)impacts the decision-making process of users of the financial statements
B)is diverse in nature
C)only includes qualitative evidence
D)includes income statement benchmarks

Question

Quizplus · Accepted Answer

Materiality in accounting refers to the importance or significance of information to users of financial statements. Information is considered material if its inclusion or exclusion could impact the decision-making process of those users. Therefore, choice A is the correct answer. Choices B, C, and D are not accurate in defining materiality in accounting.

From a Definitional Perspective, Information Is Considered Material If It