Tags Business Accounting and Bookkeeping

Animals & Plants Arts & Entertainment Auto Beauty & Health Books and Literature Business Electronics Engineering & Technology Food & Drink History Hobbies Jobs & Education Law & Government Math People & Society Science Social Studies Sports Travel & Places

0

Subjects>Business>Accounting

What is materiality concept?

Anonymous

∙ 15y ago

Updated: 4/28/2022

according to this concept accounts show transactions involving material sums.

for example :

a large business buys a computer for use in the business but treats it as an expense because for the business the sum spend on the computer, the sum is negligible.

Wiki User

∙ 15y ago

Still curious? Ask our experts.

Chat with our AI personalities

Professor

I will give you the most educated answer.

Chat with Professor

Steve

Knowledge is a journey, you know? We'll get there.

Chat with Steve

Devin

I've poured enough drinks to know that people don't always want advice—they just want to talk.

Chat with Devin

Add your answer:

Earn +20 pts

Q: What is materiality concept?

Write your answer...

Submit

Still have questions?

imp

Continue Learning about Accounting

What is materiality principle?

materiality- financial reporting is concerned only with information that is significant to affect valuations and decisions.

What does the materiality of a letter considers?

impression it makes.

What are the 12 key accounting concept?

There are 12 key accounting concepts. These concepts are, money - management, going concern, entity, dual aspect, cost, realization, time period, objectivity, conservatism, materiality, matching, and consistency.

What is difference between accounting income and cash flow?

accounting income is the financial figure that we get after deduction of all business expenses from sales.while making these deductions we follow some accounting assumptions.e.g matching concept, going concern assumption, materiality concept, etc. cash flow is the mechanism by which we see net cash generated or absorbed in business from different activities.

What are the Accounting principles?

1)going concern 2)consistency 3)materiality 4)principle of prudence 5)business Entity Accounting principles are those rules and concepts that are generally accepted as standards for the field of accounting. These are standardized by governing bodies such as GAAP and IASB. Few core principles are Accrual concept, Business Entity Concept, Time Period Assumption etc.

Trending Questions

What does IRS ref code 1341 really mean? What does BPC stand for? What decreases an asset account credt or debit? What is the name of a person who keeps financial records? What does a well designed activity based costing system start with? What is a common argument against sales tax? Can I file a 1040EZ tax form online? Do bank tellers make mistakes? How did Jonathan Bloomer's accounting background help him at Prudential? Will trade discount be entered anywhere in accounting? What do KPMG partners salary? Do you need to report a schedule K-1 on your income tax if you received no income? Is 0.40 to 1 a better return on net assets ratio than 0.45 to 1? Where can one find an invoice factoring company? What is a 401c3? What is an example of prudence? What does the journal entry to close the drawing account involve? What is the maximum amount to be received before inheritance tax? What is separtist? What are accounts found in a balance sheet?

Related Questions

The factor that affecting the assessment of materiality?

what are the factors affecting the assessment of materiality

Define concept of materiality in accounting?

Any omission, misstatement or non disclosure of information that can adversely affect users decision or discharge management from its accountability.

What is Materiality in a financial integrity state managers accountability act audit?

The question of materiality arose from an interview with CAL EPA . The question asked for a definition of materiality and substantial.

What is materiality principle?

materiality- financial reporting is concerned only with information that is significant to affect valuations and decisions.

What does the materiality of a letter considers?

impression it makes.

What are the constraints affecting accounting information?

Materiality and cost

The details or clues that create a letter's impression are its?

materiality.

What are the 12 key accounting concept?

There are 12 key accounting concepts. These concepts are, money - management, going concern, entity, dual aspect, cost, realization, time period, objectivity, conservatism, materiality, matching, and consistency.

How is materiality determined?

Materiality is typically determined by assessing whether information has the potential to significantly impact the decisions of users of financial statements. Factors considered include the nature and size of the item, its potential impact on financial statements, and its relevance to users. Materiality thresholds are often established based on quantitative benchmarks or professional judgment.

Who proposed that laws that pertained to materiality on earth also applied to the heavens?

Kepler

What is difference between accounting income and cash flow?

accounting income is the financial figure that we get after deduction of all business expenses from sales.while making these deductions we follow some accounting assumptions.e.g matching concept, going concern assumption, materiality concept, etc. cash flow is the mechanism by which we see net cash generated or absorbed in business from different activities.

What are the Accounting principles?

1)going concern 2)consistency 3)materiality 4)principle of prudence 5)business Entity Accounting principles are those rules and concepts that are generally accepted as standards for the field of accounting. These are standardized by governing bodies such as GAAP and IASB. Few core principles are Accrual concept, Business Entity Concept, Time Period Assumption etc.

Still have questions?

imp

Resources

Top Categories

Product

Company

Copyright ©2025 Infospace Holdings LLC, A System1 Company. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Answers.