The materiality constraint:
A. Prescribes that only information that would influence the decisions of a reasonable person need be disclosed.
B. Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
C. Prescribes that accounting information is based on actual cost.
D. Prescribes that a company record the expenses it incurred to generate the revenue reported.
E. Provides guidance on when a company must recognize revenue.
Answer: A
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A network co-evolution approach argues that:
a. Networks shape institutions but institutions sculpt networks and direct their growth b. Networks develop through distinct stages from embryo to organism c. Networks evolve from a chrysalis d. All of the above
Briefly summarize the importance of the Baldrige Quality Award.
What will be an ideal response?
The interest coverage ratio is equal to:
A) EBIT/interest. B) interest/EBIT. C) (debt + equity)/EBIT. D) EBIT * interest.
An auditor would issue an adverse opinion if
A. The auditor encounters adverse attitudes toward the auditor on the part of company management. B. A qualified opinion cannot be given because the auditor is not qualified to do so. C. An immaterial misstatement is present. D. The statements taken as a whole do not fairly present the financial condition and results of operations of the company.