Misstatements must be compared with some measurement base before a decision can be made about the materiality of the failure to follow accounting standards.A commonly accepted measurement base is:
A) profit.
B) total assets.
C) current assets.
D) all of the above

Question

Quizplus · Accepted Answer

Misstatements are often evaluated in relation to profit, total assets, and current assets, among other bases, to determine their materiality. This means all the options provided are commonly accepted measurement bases for assessing the materiality of misstatements.

Misstatements Must Be Compared with Some Measurement Base Before a Decision