To be considered material,an item must be one that would influence the decision of financial statement users.

Question

Quizplus · Accepted Answer

Materiality refers to the importance of an item or information in influencing the decision of financial statement users. If an item is deemed material, it should be disclosed in the financial statements as it could impact users' decisions. Therefore, for an item to be considered material, it must have the potential to influence the decision of financial statement users.

To Be Considered Material,an Item Must Be One That Would