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Accounting Principles: apprezza

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  • Note di Apprendimento
  • Revisione degli argomenti
    FAISAL A.
    YE
    FAISAL A.

    What are the materiality ?

    Frank A.
    GH
    Frank A.

    What is materiality concept?

    Gabriel O.
    ML
    Gabriel O.

    Materiality principle means that the significance and importance of an item should be considered in order to determine what is reported .insignificant invents need not be measure

    Wendy C.
    AU
    Wendy C.

    Materiality Is concerned with which data should be disclosed in financial reports. (significance) All transactions regardless of size should be recorded.

    Samuel F.
    ZA
    Samuel F.

    Materiality Because of this basic accounting principle or guideline, an accountant might be allowed to violate another accounting principle if an amount is insignificant. Professional judgement is needed to decide whether an amount is insignificant or immaterial. An example of an obviously immaterial item is the purchase of a $150 printer by a highly profitable multi-million dollar company. Because the printer will be used for five years, the matching principle directs the accountant to expense the cost over the five-year period. The materiality guideline allows this company to violate the matching principle and to expense the entire cost of $150 in the year it is purchased. The justification is that no one would consider it misleading if $150 is expensed in the first year instead of $30 being expensed in each of the five years that it is used. Because of materiality, financial statements usually show amounts rounded to the nearest dollar, to the nearest thousand, or to the nearest million dollars depending on the size of the company

    Zachary B.
    US
    Zachary B.

    What are some materiality accounting principles?

    Ella Rose M.
    MY
    Ella Rose M.

    if audited, one can get into trouble with non-disclosure of removed stocks.

    Ivan Fredrick K.
    UG
    Ivan Fredrick K.

    How will my not disclosing the data in the financial report affect my accounting books?

    Diamond T.
    US
    Diamond T.

    What are the materiality

    Douglas R.
    US
    Douglas R.

    Business withdrawals are important to report and keep track-of.

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