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    • 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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