Financial information is said to be __________ if its misstatement influences the decision making of the users on the basis of that information.

Relevant

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Reliable

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Material

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Immaterial

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Solution

The correct option is B Material
Financial statements items are material if they could influence the economic decisions of users. The materiality concept is the universally accepted accounting principle that all material matters are to be disclosed. Financial information is said to be material if its misstatement influences the decision making of the users on the basis of that information.

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