Home › CBSE Class 12 (Commerce) › Accountancy › Financial Statements of a Company › Charging pencils, pens and stamps to expense in …
Charging pencils, pens and stamps to expense in the year of purchase follows the convention of
AMateriality
BFull disclosure
CConsistency
DConservatism
Answer & Solution
Correct answer: A. Materiality
Small items of trivial value are treated as expense when bought even though they are assets in nature, which is the materiality convention.
Related questions
Labour unions use financial statements when negotiatingAnother name for the balance sheet is the statement ofMD&A in an annual report gives a narrative from the view ofInternational Financial Reporting Standards are developed by theGAAP stands forConsolidated statements present a parent and its subsidiaries asMoney received for services not yet provided is recorded asApple trees grown to produce apples are an example of