An item would be considered material and therefore would be disclosed in the financial statements if the
A) expected benefits of disclosure exceed the additional costs.
B) impact on earnings is greater than 3 percent.
C) FASB definition of materiality is met.
D) omission of misstatement of the amount would make a difference to the users.

Question

Quizplus · Accepted Answer

Materiality is determined by whether the omission or misstatement of an item would influence the economic decisions of users of the financial statements.

An Item Would Be Considered Material and Therefore Would Be