Qualitative reasons for materiality List the reasons why an amount that is quantitatively immaterial might be considered material due to qualitative reasons
The SEC provides guidance when a quantitatively small misstatement may still be considered material due to qualitative reasons. These reasons include:
? The misstatement hides a failure to meet analysts' consensus expectations for the company.
? The misstatement changes a loss into income, or vice versa.
? The misstatement concerns a segment or other portion of the company's business that plays a significant role in the company's operations or profitability.
? The misstatement affects the company's compliance with regulatory requirements.
? The misstatement affects the company's compliance with loan covenants or other contractual requirements.
? The misstatement has the effect of increasing management's compensation.
? The misstatement involves the concealment of an unlawful transaction.
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Anne, a beautician by profession, owns a salon in the small town of Franklin, New Jersey. Every weekend, she makes it a point to visit the other salons in Franklin to find out about the beauty services they offer to customers
Anne is attempting to conduct market research by ________. A) studying customer behavior B) forming alliances with competing firms C) using experimental research techniques D) checking out rivals E) tapping into marketing partner expertise
Media coverage and telecasts only expose the brand and do not necessarily embellish its meaning in any direct way
Indicate whether the statement is true or false
In-store demonstrations, displays, sales, and loyalty programs are examples of ________
A) direct marketing B) sales promotion C) public relations D) personal selling E) affinity marketing
Treasury shares are shares that have been authorized but have not yet been issued
a. True b. False Indicate whether the statement is true or false