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WAEC Financial Accounting 2015 Question 31

Question 31

Accounting Concepts and Conventions

The accounting concept that allows the cost of kitchen cutlery to be expensed, though it will be used for more than one year is

  1. A.materiality.
  2. B.accrual.
  3. C.going concern.
  4. D.business entity.
Show the answer and explanation

Answer: A (materiality.)

Explanation

Small-value items are written off at once because treating them as fixed assets would not matter to users: the materiality concept.