Which of the following is the primary basis used to decide materiality for a for-profit entity?
A) net sales
B) net assets
C) net income before tax
D) all of the above

Question

Quizplus · Accepted Answer

Net income before tax is commonly used as the primary basis for determining materiality in a for-profit entity, as it reflects the entity's profitability and is a key indicator for stakeholders.

Which of the Following Is the Primary Basis Used to Decide