True or False

1) To judge the materiality of an absolute financial statement amount, one must consider the size of the company reporting

2) Comparing percentage derived from financial stamens analysis has the drawback of varying materiality levels

3) The Materality of accouting information refers to whether it is viewed as favorable ( good news) or unfavorable ( bad news)

4) Meaningful comparisions between two companies generally should be made using percentage analysis or ratio analysis, not absolute amount

5) Companies must account for inmaterial items in compliance with generally accepted accouting principles