The Materiality Principle

question 112

Multiple Choice

The materiality principle

• A) States that an amount can be ignored if its effect on financial statements is unimportant to the user and permits use of the direct write-off method
• B) Permits use of the direct write-off method
• C) Prohibits use of the direct write-off method
• D) States that an amount can be ignored if its effect on financial statements is unimportant to the user
• E) Both permits and prohibits use of the direct write-off method

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