Information that is material means that an error or alternative method of handling a transaction
A)would possibly affect the judgment of someone relying on the financial statements.
B)would not affect the decisions of users.
C)might cause a company to understate its earnings for the accounting period.
D)could increase the profitability of a company.

Question

Quizplus · Accepted Answer

Material information is information that would impact the judgment of someone relying on the financial statements. This means it is significant enough to potentially affect decisions made by users of the financial statements.

Information That Is Material Means That an Error or Alternative