🎯Conceptual Framework: 26 MCQs Part 1

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Andrew Sopek 5 June 2026

For question #9, it says that “materiality” is incorrect. I thought materiality counts as information that is capable of making a difference in a decision? I understand that relevance is the correct answer, but wouldn’t materiality be correct as well?

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1. Maroun, CPA 6 June 2026
  
  Hello Andrew,
  
  You are right that materiality is closely related to information that can affect a decision. The reason materiality is still not the best answer here is that the phrase “capable of making a difference in a decision” is FASB’s definition of relevance.
  
  Materiality is really a company-specific aspect of relevance. In other words:
  Relevance = information can make a difference in a decision
  Materiality = the information is important enough that omitting or misstating it would influence decisions
  
  That’s why answer choice “B” is the best answer choice.
  
  Keep up the great work!
  
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CMA Exam Part 1

1. EXTERNAL FINANCIAL STATEMENTS

Participants 2381

🎯Conceptual Framework: 26 MCQs Part 1

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