A-LevelAccountingFinancial reporting and ethical considerations9706/12 · Oct/Nov 2011 · Q61 Mark

A company values its loose tools for inclusion in its balance sheet. The tools are not very valuable and the company uses estimating when valuing them. Which accounting principle is being applied?

Aaccruals

Bconsistency

Cgoing concern

Dmateriality

✓ Correct answer

D: materiality

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About this question

Topic: Financial reporting and ethical considerations, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2011 Paper 1 Variant 2, question 6.

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