Companies consider only quantitative factors in determining whether an item is material.

Question

Quizplus · Accepted Answer

Companies consider both quantitative and qualitative factors in determining whether an item is material. Quantitative factors include the amount or size of the item, while qualitative factors include the nature of the item, its impact on the company's financial statements, and the expectations of users of the financial statements.

Companies Consider Only Quantitative Factors in Determining Whether an Item