Materiality is based upon which factor(s)?
A)Timeliness of an item.
B)Amount and nature of an item.
C)Consistency of an item.

Question

Quizplus · Accepted Answer

Materiality is based on the amount and nature of an item. In accounting, materiality is determined by considering whether an item's omission or misstatement would affect the economic decisions of users of the financial statements. Therefore, the significance or materiality of an item is determined based on its size (amount) and its relevance (nature) to the financial statements as a whole.

Materiality Is Based Upon Which Factor(s)