Question

The cost of a calculator will be treated as an expense in that particular year in which it is purchased although it may be used for 3-4 years. Name the accounting concept which is applied here and also explain it. [2]

Answer 1

the cost of the calculater will be treated as an expense in that particular year in which is purchased although it may be used for 3-4 year, this is in accordance to the concept of materiality..

*explanation* -

the convention of the materiality anticipated that in accounting only those translation will be evaluated which have a substantial impact on the financial standing of the organisation and the other dealing which have unimportant effect will be ignored..

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