The determination of whether an item is material is based on which of the following?
A)the size of the item
B)the nature of the item
C)whether its non-disclosure could influence users' decision making
D)all of the options are used to determine whether an item is material

Question

Quizplus · Accepted Answer

All of the options are used to determine whether an item is material. Materiality is a relative concept and depends on the size, nature, and circumstances surrounding the item, as well as the potential impact of its non-disclosure on users' decision making. Therefore, all of these factors must be considered to determine whether an item is material or not.

The Determination of Whether an Item Is Material Is Based