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

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

Correct Answer: Option B

B. materiality

Explanation

The materiality principle states that an accounting standard can be ignored if the net impact of doing so has such a small impact on the financial statements that a reader of the financial statements would not be misled.