The materiality principle
A) States that an amount can be ignored if its effect on financial statements is unimportant to the user and permits use of the direct write-off method
B) Permits use of the direct write-off method
C) Prohibits use of the direct write-off method
D) States that an amount can be ignored if its effect on financial statements is unimportant to the user
E) Both permits and prohibits use of the direct write-off method

Question

Quizplus · Accepted Answer

The materiality principle states that an amount can be ignored if its effect on financial statements is unimportant to the user and permits use of the direct write-off method.

The Materiality Principle