Which of the following would not be a proper application of the concept of materiality by Millridge Corporation?
A)Transactions involving small dollar amounts are not recorded in Millridge's accounting records.
B)Estimates of supplies on hand are used to determine the supplies expense for the period.
C)On a monthly basis,utility bills are expensed in the month paid,rather than in the month in which services are used.
D)Immaterial items are ignored in making end-of-period adjusting entries.

Question

Quizplus · Accepted Answer

Transactions involving small dollar amounts should still be recorded in a company's accounting records to ensure completeness and accuracy of financial information. Ignoring small transactions entirely could lead to inaccuracies in financial reporting.

Which of the Following Would Not Be a Proper Application