Question

    ‘Trivial transactions can be ignored’. Which of the

    following accounting convention is true in context of this statement?
    A Consistency Correct Answer Incorrect Answer
    B Full Disclosure Correct Answer Incorrect Answer
    C Materiality Correct Answer Incorrect Answer
    D Conservatism Correct Answer Incorrect Answer
    E Going concern Correct Answer Incorrect Answer

    Solution

    All the material information must be recorded and what is material is subjective, and depends on the organization in the question. Materiality Convention states that only the material/ significant transactions should be recorded and trivial transactions can be ignored.

    Practice Next
    More Alternate Sources of Finance Questions
    ask-question