Which of the following is an example of a qualitative factor of materiality?
Understand the Problem
The question is asking to identify which of the provided options is an example of a qualitative factor of materiality in a business context. It requires understanding factors that influence materiality and distinguishing between quantitative and qualitative metrics.
Answer
a. The client is experiencing a slowdown in sales and is struggling to pay vendors on time.
The final answer is a. The client is experiencing a slowdown in sales and is struggling to pay vendors on time.
Answer for screen readers
The final answer is a. The client is experiencing a slowdown in sales and is struggling to pay vendors on time.
More Information
Qualitative factors of materiality often relate to circumstances that could affect decision-making processes, such as financial difficulties that might influence the client's operations.
Tips
Confusing qualitative with quantitative factors is common. Qualitative factors consider the nature and implications of information, not just numerical values.
Sources
- Solved X Your answer is incorrect. Which of the following is - Chegg - chegg.com
- CH 3 hw (docx) - CliffsNotes - cliffsnotes.com
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