What implies that errors, which could occur during journalizing and posting transactions, should be significant enough to affect the decision making process?

Question

Quizplus · Accepted Answer

Materiality implies that errors need to be significant enough to affect the decision making process. Actuality refers to the actual occurrence of a transaction, equity refers to the residual interest in the assets of an entity after deducting liabilities, and mutuality refers to the concept of reciprocal rights and obligations between parties. None of these concepts entail the significance of errors in decision making.

What Implies That Errors, Which Could Occur During Journalizing and Posting