Which of the following is most likely considered a material omission from the rules of financial statement reporting?
A)The company no longer discloses a previously settled contingency.
B)The company does not present the fair value of all current assets on the balance sheet.
C)A privately held company does not disclose earnings per share.
D)A company with a net loss does not present a statement of cash flows.

Question

Quizplus · Accepted Answer

A statement of cash flows is a required financial statement, and omitting it, especially when there is a net loss, is a material omission as it provides essential information about cash inflows and outflows.

Which of the Following Is Most Likely Considered a Material