Information that is material must be separately disclosed in the financial statements.

Question

Quizplus · Accepted Answer

According to Generally Accepted Accounting Principles (GAAP), material information must be separately disclosed in the financial statements to provide users with relevant and reliable information for making informed decisions. Materiality is determined based on the nature, size, and impact of the information on financial statements and is evaluated on a case-by-case basis. Failure to disclose material information can result in misinterpretation of financial statements and can affect the decision-making process of users.

Information That Is Material Must Be Separately Disclosed in the Financial