Materiality and aggregation  LO2 Indicate whether each of the following statements is true or false. 1. A material item is determined solely on the basis of its size. 2. A class of assets or liabilities is determined by reference to items of a similar nature or function. 3. Inventories and trade accounts receivable may be aggregated in the statement of financial position. 4. Cash and cash equivalents may be aggregated in the statement of financial position.