An accounts receivable balance is immaterial when
A)knowing the correct balance would not change the decision of an outside user of the financial statements
B)the balance has been paid in a subsequent period
C)collection of the balance is assured
D)the cash balance exceeds the accounts receivable balance

Question

Quizplus · Accepted Answer

An accounts receivable balance is considered immaterial when knowing the correct balance would not change the decision of an outside user of the financial statements. In other words, the balance is not significant enough to impact the overall financial picture, and therefore does not need to be disclosed in detail or with significant emphasis.

An Accounts Receivable Balance Is Immaterial When