Since Materiality Is Relative,it Is Necessary to Have Benchmarks for Establishing

Multiple Choice

Since materiality is relative,it is necessary to have benchmarks for establishing whether misstatements are material.Normally,the most important base for deciding what is material,because it is regarded as a critical item of current period information for users,is

A) total assets.
B) net income.
C) net working capital.
D) net income before taxes.