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Materiality is a component of the faithful representation qualitative characteristic. a) True b) False

Question

Materiality is a component of the faithful representation qualitative characteristic. a) True b) False

Materiality is a component of the faithful representation qualitative characteristic.
a) True
b) False

Solution

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BorisAdvanced · Tutor for 1 years

Answer

b) False<br /><br />Materiality is not a component of the faithful representation qualitative characteristic. Instead, it is a component of the relevance qualitative characteristic in financial reporting. Faithful representation involves completeness, neutrality, and freedom from error.
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