Which of the following concepts states that a company must perform strictly proper accounting ONLY for significant items?

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The materiality concept states that a company must perform strictly proper accounting ONLY for significant items. It means that only items that are material or significant should be recorded and disclosed properly, while insignificant items can be omitted or handled in an expedient manner. This concept is important for ensuring that financial statements are not cluttered with immaterial details and that resources are used efficiently to prepare financial reports. A is incorrect because accounting conservatism refers to a prudent approach of recognizing losses and expenses as soon as possible while deferring gains and revenues until they are certain. C is incorrect because the disclosure principle relates to the idea that financial statements should provide all relevant information that could affect user's decision-making. D is incorrect because the consistency principle requires a company to use the same accounting methods and procedures over time to make the financial statements more comparable and understandable.

Which of the Following Concepts States That a Company Must