Materiality Is One of the Basic Assumptions of Accounting Used

question 14

True/False

Materiality is one of the basic assumptions of accounting used by the International Accounting Standards Board (IASB).

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Definitions:

Capital Account

A financial statement that shows the changes in a company’s equity throughout a period, from investments, withdrawals, and net income.

Recording a Bonus

The process of documenting an additional compensation given to employees or stakeholders, over and above their regular earnings.

New Partner

An individual who joins an existing partnership, bringing in fresh capital or skills and sharing in the business's profits and losses.

Historic Cost

The original monetary value of an asset or transaction at the time it occurred, without adjustments for inflation or other factors.