Whether an item is large enough to likely influence the decision of an investor or creditor.

(b) Constraint that weighs the cost that companies will incur to provide the information against the benefit that financial statement users will gain from having the information available.

(c) Obligations that a company expects to pay within the next year or operating cycle, whichever is longer.

(d) Information that is complete, neutral, and free from error. (e) The primary accounting standard-setting body in the United States.

Question

Monica Conway

Business

3 September, 04:41

Whether an item is large enough to likely influence the decision of an investor or creditor.

(b) Constraint that weighs the cost that companies will incur to provide the information against the benefit that financial statement users will gain from having the information available.

(c) Obligations that a company expects to pay within the next year or operating cycle, whichever is longer.

(d) Information that is complete, neutral, and free from error. (e) The primary accounting standard-setting body in the United States.

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Answers (1)

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Elliot · Answer 1

Andswer:

The question is related to the Concept of Materiality. The concept is used to judge and measure whether an event or a transaction is able to influence the decisions of an investor.

In this scenario, the answer is (c) Obligations that a company expects to pay within the next year or operating cycle, whichever is longer.

Because the size and the nature of such obligations may influence investors to invest or not in the company.