Categories: Accounting WAEC

The accounting concept which states that expenditure involving insignificant amounts should be regarded as expenses and not assets is?

A. dual aspect concept
B. realization concept
C. materiality concept
D. business entity concept

Correct Answer:

Option C – materiality concept

Explanation

Materiality is a principle which states that only items of material value are recorded. For example, the cost of a stapler should not be capitalized but expensed.

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