Accounting for IGCSE & O level - Advanced Principles (Section 9 - No. 6)

What is the primary goal of the materiality principle in accounting?

To ensure all transactions are recorded.

To ensure that only material items affect the financial statements.

To ensure that financial statements are accurate.

To ensure that only large value items are recorded.

The materiality principle focuses on items that are significant enough to influence the decisions of financial statement users.