Question: Explain materiality and give an example of both a material and an immaterial item.

Explain materiality and give an example of both a material and an immaterial item.

Step by Step Solution

★★★★★

3.48 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Materiality refers to the financial significance of the amounts reported in the financial state... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

323-B-A-I-S (3627).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Q:

Explain the following terms and give an example of each: (a) Asset, (b) Liability, (c) Shareholders' equity, (d) Revenues, and (e) Expenses.

Q:

Explain cost-based pricing and give an example that shows how prices would be determined using this method.

Q:

Explain market-based pricing and give an example that shows how prices would be determined using this method.

Q:

answer the following questions in brief paragraph form 1 what is GAAP? What is IFRS? 2 name the four characteristics that help make accounting information useful. 3 what is the seperate-enity...

Q:

Describe what materiality is. Give an example of material item on the balance sheet of Chevron. What would be an example of a non-material item. What happens if you set the dollar amount of material...

Q:

Read this Digital native advertising is online advertising that matches the appearance and purpose of the content in which it is embedded. For example, the wedding website The Knot may feature...

Q:

Classic Cabinets has a factory that produces kitchen cabinets. The company has other product lines. Materials and labor for the cabinets are determined by each job. To simplify the assignment, we...

Q:

Classic Cabinets has a factory that produces custom kitchen cabinets. It has multiple product lines. Materials and labor for the cabinets are determined by each job. To simplify the assignment, we...

Q:

1. Give an example of a product that is best suited for process costing. Give an example of a product best suited for job costing. 2. Consider a job order costing system. Give an example of a Raw...

Q:

explain in your own word what is class 9 hazard material ; Miscellaneous Dangerous Goods give an example of 3 miscellaneous material commonly transported for the use of manufacturing or buisness...

Q:

A landlord owned and leased rental units. Prospective tennants agreed to rent a unit but when the landlord found out they were not married she told them she could not rent to them because it would...

Q:

A nationally known supermarket decided to promote its own brand of soft drinks on TV for two weeks. Before the ad campaign, the company randomly selected 21 of its stores across the United States to...

Q:

Expenses for a 1 0 0 0 square foot office space are $ 6 per square foot. The lease specifies and expense stop at $ 5 . 4 0 . What is the total expense paid by the landlord

Q:

Summarize the dissents argument that searches of parolees homes without either warrants or reasonable suspicion unduly invade parolees privacy ideal in their homes.

Q:

Account for rent expense. (LO 1, 3) Susan rented office space for her new business on March 1, 2008. To receive a discount, she paid \(\$ 3,600\) for 12 months' rent in advance. How will this advance...

Q:

Account for insurance expense. (LO 1, 3) Baker Company paid \(\$ 3,600\) on July 1, 2007, for a 2-year insurance policy. It was recorded as prepaid insurance. Use the accounting equation to show the...

Q:

Account for interest expense. (LO 1, 2) Sojourn Company purchased equipment on November 1, 2006, and gave a 3-month, \(9 \%\) note with a face value of \(\$ 20,000\). On maturity, January 31 , the...

Q:

You are contemplating leaving your full-time employment to concentrate your ability on the marketing of a new low-energy portable heater. You have spoken to a group of manufacturers of similar...

Q:

are Euclidean distance measurements are also know as straight - line distances. True False

Q:

You have just completed the first year of operation for your business and have the following information: sales, $200,000; cost of goods, $140,000; rent, $18,000; utilities, $8,400; insurance,...