Materiality is relative. As such:

Question $8$ options:

a$)$

the amount of stockholders$$ equity is used as a base.

b$)$

the type of account and its related financial statement plays an important role in materiality.

c$)$

net income is more critical than total revenues or total expenses.

d$)$

materiality threshold values should be increased where management barely qualifies for bonuses and other short$-$term compensation.