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<p><strong>a) Application of same accounting method from one period to another</strong><strong>b) Relative size & importance of items</strong><strong>c) Inappropriate assumption of firm undergoing Bankruptcy</strong><strong>d) Normal basis of accounting of Assets</strong></p>
ANSWER IS B
B) Relative size & Importance of Items,,.
B
B is the most appropriate choice.
A) thanks sir
Choice (B).
CHOICE B IS THE MOST APPROPRIATE ANSWER
B. To be considered material, we have to consider the amount/size of the item in consideration of the entire population. For instance, a few thousand expense item is immaterial to a million-dollar company. But a misstatement of an immaterial amount arising from fraud may be considered material to the company.
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