A business shows the following figures for the current financial year:
$$\begin{array} { l r }
\text { Total assets } & \$ 80.0 \
\text { Total liabilities } & \$ 40.0 \
\text { (a) Long-term debentures } & \$ 2.5 \
\text { (b) Cash on deposit } & \$ 3.5 \
\text { (c) Asset revaluation reserve } & \$ 2.5 \
\text { (d) Provision for doubtful debts } & \$ 3.0
\end{array}$$ The items that are least likely to be considered as material are:

Question

A business shows the following figures for the current financial year:
$$\begin{array} { l r } 
\text { Total assets } & \$ 80.0 \
\text { Total liabilities } & \$ 40.0 \
\text { (a) Long-term debentures } & \$ 2.5 \
\text { (b) Cash on deposit } & \$ 3.5 \
\text { (c) Asset revaluation reserve } & \$ 2.5 \
\text { (d) Provision for doubtful debts } & \$ 3.0
\end{array}$$ The items that are least likely to be considered as material are:

Quizplus · Accepted Answer

Cash on deposit and provision for doubtful debts are relatively small amounts compared to total assets and liabilities, making them less likely to be considered material.

A Business Shows the Following Figures for the Current Financial