alleryStart learning →Leaving out a trivial expense that would not change users' decisions is justified by the concept of
Agoing concern
Bmateriality
Cconsistency
Ddual aspect
Answer & Solution
Correct answer: B. materiality
Materiality allows tiny items to be ignored because they make no practical difference to decisions.
Keep practising Accounting Concepts
Browse all Accounting Concepts questions for CA Foundation, or explore more Accounting topics.
Related questions
Forensic accounting engagements arise fromFinancial statements published after the period ends are mainlyManagement accounting also covers future-oriented items such asWhich audit firm was dissolved after the Enron scandal?The Sarbanes-Oxley Act of 2002 followed the admissions of fraud atPreventing and detecting fraud is primarily the duty ofAn intentional misstatement in accounting records involving deception isWhich accounting field aims to give an independent opinion on financial statements?