Which of the Following Would Not Be a Proper Application

question 75

Multiple Choice

Which of the following would not be a proper application of the concept of materiality by Millridge Corporation?

• A)Transactions involving small dollar amounts are not recorded in Millridge's accounting records.
• B)Estimates of supplies on hand are used to determine the supplies expense for the period.
• C)On a monthly basis,utility bills are expensed in the month paid,rather than in the month in which services are used.
• D)Immaterial items are ignored in making end-of-period adjusting entries.

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Definitions:

Liquidated Debt

Debt for which there is no dispute between the parties about the fact that money is owed and the amount of money owed.

Valid Consideration

Something of value (cash, services, goods, etc.) that is exchanged between parties in a contract, making the contract legally binding.

Preexisting Duty Rule

in contract law, states that an agreement to perform an act already legally obligated to is not sufficient consideration for a new promise.

Negative Information

Adverse details or data that can impact an individual or entity's reputation or creditworthiness.