The concept which permits information to be grouped together with other information as long as this does not mislead statement users in their decision making is called:
A) grouping.
B) materiality.
C) clustering.
D) accrual basis.

Question

Quizplus · Accepted Answer

The concept which permits information to be grouped together with other information is materiality. Materiality refers to the idea that information should be disclosed or presented in a way that is significant enough to impact the decisions of statement users. As long as the grouping does not mislead statement users in their decision making, it is considered acceptable. Clustering and grouping are not specific accounting concepts, and accrual basis refers to a method of accounting, not a concept related to grouping information.

The Concept Which Permits Information to Be Grouped Together with Other