When providing information possessing qualitative characteristics that render the information useful, materiality may affect what is included and excluded from the financial information that is reported. Of all the descriptions of materiality that was described in the online lecture (including the SEC), which of the following is false? Materiality examines both the relative size and the nature of an item. An item is considered material if it preserves a positive earnings pattern or impacts management's compensation under a performance bonus plan. None of the answers listed are false. . An item is considered material if it represents 5% or more of assets or net income. An item is considered material if it converts a loss into a profit or helps meet analysts' earnings targets