Question

    A company chooses not to record a small calculator worth

    ₹500 as a fixed asset. Which concept is being applied?
    A Conservatism Correct Answer Incorrect Answer
    B Consistency Correct Answer Incorrect Answer
    C Materiality Correct Answer Incorrect Answer
    D Matching Correct Answer Incorrect Answer

    Solution

    Materiality concept allows insignificant items to be written off instead of capitalizing.

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