The accounting concept that allows the cost of kitchen cutlery to be expensed , though it will be used for more than one year is
A. Materiality B. Accural C. Going concern D. Business Entity
Correct Answer: A
Explanation
In accounting, the concept of materiality allows you to violate another accounting principle if the amount is so small that the reader of the financial statements will not be misled. This means 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.
