The generally accepted accounting principle that indicates that events or information must be accounted for if they make a difference to the user of the financial information is the _____________.

Question

Quizplus · Accepted Answer

The materiality principle states that events or information must be accounted for if they make a difference to the user of the financial information. In other words, only material information should be reported in financial statements. The other principles listed (objectivity, full disclosure, and matching) are also generally accepted accounting principles, but they do not specifically address the importance of materiality.

The Generally Accepted Accounting Principle That Indicates That Events or Information