O-LevelAccountingAccounting principles and policies7707/11 · Oct/Nov 2012 · Q291 Mark

A trader decided that all items of office equipment costing less than $500 would be treated as office expenses in the year of purchase. Which accounting principle is being applied?

Agoing concern

Bhistorical cost

Cmateriality

Dprudence

✓ Correct answer

C: materiality

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Topic: Accounting principles and policies, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2012 Paper 1 Variant 1, question 29.

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