When a financial statement contains omissions or misstatements that would alter the judgment of a reasonable person,it violates
A)neutrality.
B)consistency.
C)conservatism.
D)materiality.

Question

Quizplus · Accepted Answer

This is the definition of materiality in accounting. Materiality refers to the importance of an omission or error in the financial statements that would impact the decision-making of a reasonable person. Therefore, if a financial statement contains omissions or misstatements that would alter the judgment of a reasonable person, it violates materiality. Neutrality refers to the unbiased presentation of financial information, consistency refers to comparability of financial information over time, and conservatism refers to the cautious approach taken by accountants when dealing with uncertainty.

When a Financial Statement Contains Omissions or Misstatements That Would