Net income before tax is common base used to determine materiality in a non-for-profit company.

Name: Net income before tax is common base used to determine materiality in a non-for-profit company.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Net income before tax is a common base used to determine materiality in for-profit companies, not non-profit companies. Non-profit companies may use alternative bases, such as total revenue or total expenses, to determine materiality.

Net Income Before Tax Is Common Base Used to Determine