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Normally an account is considered material if the account balance is large in relationship with either the balance sheet or income statement. Usually land and buildings can be large or material when compared to the balance sheet as a whole and cash is not large or material when compared to the same balance sheet.

When conducting an audit, would you place more emphasis on auditing cash or land and buildings?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92770121

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