An example of a qualitative material item is
A) an incorrect value reported for an asset.
B) a related party transaction.
C) interest expenses as being 6% of total sales.
D) none of the above

Question

Quizplus · Accepted Answer

A qualitative material item refers to information that, although it may not be significant in terms of its monetary value, is crucial for understanding a company's financial situation or for making informed decisions. A related party transaction is an example of this, as it could indicate potential conflicts of interest or other issues that are not immediately apparent through quantitative analysis alone. Incorrect values for assets or specific percentages of expenses, as mentioned in the other options, are quantitative in nature.

An Example of a Qualitative Material Item Is