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The Financial Statements for DRG Industries Contain a Misstatement That

Question 14

Multiple Choice

The financial statements for DRG Industries contain a misstatement that is so significant that reasonable investors would likely make a different investment decision if they were given the correct information. What concept of GAAP applies to this situation?


A) Full disclosure
B) Revenue recognition
C) Materiality
D) Cost-benefit

Correct Answer:

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