An item is considered material if
A) It doesn't cost a lot of money.
B) It is of a tangible good.
C) It is likely to influence the decision of an investor or creditor.
D) The cost of reporting the item is greater than its benefits

Question

Quizplus · Accepted Answer

Materiality refers to the significance or importance of an item in relation to the financial statements. An item is considered material if it is likely to influence the decision of an investor or creditor in making an informed judgement. The other options are not accurate explanations of materiality.

An Item Is Considered Material If