The principle that accountants do not have to account for every last item in strict accordance with the accounting rules is known as the:
A)relevance principle.
B)materiality principle.
C)cost principle.
D)going- concern principle.

Question

Quizplus · Accepted Answer

The materiality principle states that accountants do not have to account for every last item in strict accordance with the accounting rules if the item is not material. Materiality is a qualitative characteristic of accounting information that indicates the magnitude of an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement.

The Principle That Accountants Do Not Have to Account for Every