A company discovers that its Cost of goods sold is understated by an insignificant amount.They do not need to correct the error because of the materiality concept.

Name: A company discovers that its Cost of goods sold is understated by an insignificant amount.They do not need to correct the error because of the materiality concept.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The materiality concept in accounting allows companies to disregard minor errors that would not influence the decision-making process of users of financial statements.

A Company Discovers That Its Cost of Goods Sold Is