The accounting concept that allows the cost of kitchen cutlery to be expensed; though it can be used for more than one year is?

A. Materiality
B. Accrual
C. Going concern
D. Business entity

Correct Answer:

Option A – Materiality

Explanation

Materiality states that only items of material values are recorded e.g. the cost of a stapler should not be capitalized but expensed just as kitchen cutlery.