Information about an item is _______ if its omission or misstatement might influence the financial decision of the users taken on the basis of that information.

Concrete

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Complete

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Immaterial

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Material

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Solution

The correct option is D Material
According to the materiality convention, the business must report all the transactions which are of material nature and ignore the insignificant items. The firm has to make a distinction between material and immaterial matters.

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Information about an item is _______ if its omission or misstatement might influence the financial decision of the users taken on the basis of that information.

The correct option is D MaterialAccording to the materiality convention, the business must report all the transactions which are of material nature and ignore the insignificant items. The firm has to make a distinction between material and immaterial matters.

The correct option is D Material
According to the materiality convention, the business must report all the transactions which are of material nature and ignore the insignificant items. The firm has to make a distinction between material and immaterial matters.