Convention of Materiality [June 2023, l Mark]
Options
A
B
C
D
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Theoretical FrameworkQuestion 4614 of 110
All Questions Correct Answer
✅ Option — Correct Option
All Options:
- A
- B
- C
- D
Detailed Solution & Explanation
Convention of Materiality:
All material i.e. important/ significant items or information should be properly
accounted & disclosed in the accounts & financial statements.
That means immaterial items can be given a convenient accounting treatment.
Ex. : Stationery, Postage, such items are treated as expense in the period of purchase
even though some unconsumed balance may be there.
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