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Problem 1: Which of the following statements relating to materiality is correct?
Option 1: Extensive guidance is given in accounting standards on the concept of materiality.
Option 2: The disclosure provisions of accounting standards do not need to be applied if the resulting information is immaterial.
Option 3: The disclosure provisions of accounting standards must always be applied even if the resulting information is immaterial.
Option 4: Materiality only ever depends on the size of an item.
Financial Statement Analysis and Preparation
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