The comment that "items that are not material may be recorded in the financial statements in the most economical and expedient manner possible" is representative of:
A)matching.
B)conservatism.
C)realization.
D)materiality.
E)None of the answers are correct.

Question

Quizplus · Accepted Answer

This statement is representative of the materiality principle, which states that financial statements should only include information that is material or significant to the users of the statements. Non-material items can be recorded in the most economical and expedient manner possible, without the need for excessive detail. This helps to ensure that financial statements are not cluttered with unnecessary information, which could make it difficult for users to interpret the statements.

The Comment That "Items That Are Not Material May Be