alleryStart learning →What is the US legal test of materiality?
AFact exceeds 5% of profit
BFact alters an investor's total mix
CFact is vetted by auditors
DFact is in the annual report
Answer & Solution
Correct answer: B. Fact alters an investor's total mix
A fact is material if there is a substantial likelihood a reasonable investor would view it as significantly altering the total mix of information.
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