7. The following statements are correct, except: Other comprehensive income comprises items of income and expense, excluding reclassification adjustments, that are recognized in profit or loss. а. b. Omissions or misstatement of items are material if they could individually or collectively influence the economic decisions of users. С. Assessing whether an omission or misstatement could influence economic decisions of users, and so become material, requires consideration of the characteristics of those users. d. Users are assumed to have a reasonable knowledge of business and economic activities and accounting and a willingness to study the information with reasonable diligence.
7. The following statements are correct, except: Other comprehensive income comprises items of income and expense, excluding reclassification adjustments, that are recognized in profit or loss. а. b. Omissions or misstatement of items are material if they could individually or collectively influence the economic decisions of users. С. Assessing whether an omission or misstatement could influence economic decisions of users, and so become material, requires consideration of the characteristics of those users. d. Users are assumed to have a reasonable knowledge of business and economic activities and accounting and a willingness to study the information with reasonable diligence.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter4: Income Measurement And Accrual Accounting
Section: Chapter Questions
Problem 4.23E: The Effect of Ignoring Adjusting Entries on Net Income For each of the following independent...
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