Accounting for IGCSE & O level - Advanced Principles (Section 4 - No. 27)
What does the principle of Materiality suggest about the inclusion of small value expense items?
All expenses should be recorded regardless of their value
Small value expenses can be ignored.
Small value expenses should be classified as extraordinary items
Small value expenses should be added to the income statement
Пояснення
The materiality principle allows for small-value expenses to be ignored.