Difference between revisions of "Pop Quiz Materiality"

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(Created page with " : '''Answer''': ''Company B''. It's at a much earlier stage in its organizational life cycle. Its net income is likely much lower so smaller swings in net income would have...")
 
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: '''Answer''': ''Company B''.
 
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:* It's at a much earlier stage in its organizational life cycle.
: '''Answer''': ''Company B''. It's at a much earlier stage in its organizational life cycle. Its net income is likely much lower so smaller swings in net income would have a proportionately greater impact on decision-making ''(versus Company A.)''
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:* Therefore its <u>net income</u> is likely much lower so smaller swings in net income would have a proportionately greater impact on decision-making ''(versus Company A.)''

Revision as of 17:50, 12 March 2019

Answer: Company B.
  • It's at a much earlier stage in its organizational life cycle.
  • Therefore its net income is likely much lower so smaller swings in net income would have a proportionately greater impact on decision-making (versus Company A.)