Materiality can be measured in terms of
A)Absolute dollars.
B)Relative percentages.
C)Both absolute dollars and relative percentages.
D)None of these ans choices are correct.

Question

Quizplus · Accepted Answer

Materiality can be measured both in absolute dollars and relative percentages. Absolute dollars refer to a specific dollar amount that may have a significant impact on a company's financial statements, while relative percentages compare the amount in question to a baseline, such as revenue or income. Both methods are commonly used by auditors and financial analysts to assess the significance of financial information.

Materiality Can Be Measured in Terms of