If most or all users' decisions that are based on the financial statements are likely to be significantly affected, the materiality level is
A) unrestricted.
B) material.
C) pervasive.
D) risky.

Question

Quizplus · Accepted Answer

Materiality is considered pervasive when it affects the decisions of users on the basis of the financial statements in a significant manner. This means that the issue is so significant that it could influence the economic decisions of users made on the basis of the financial statements.

If Most or All Users' Decisions That Are Based on the Financial