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What do you mean by the concept/principle of Materiality?

<p><strong>a) Application of same accounting method from one period to another</strong><strong>b) Relative size &amp; importance of items</strong><strong>c) Inappropriate assumption of firm undergoing Bankruptcy</strong><strong>d) Normal basis of accounting of Assets</strong></p>

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/11/30
Tazkiyah Nooreen latona
by Tazkiyah Nooreen latona , ADMINISTRATIVE OFFICER , ALERT SECURITY SERVICES LTD

ANSWER IS B

Muhammad Saddique
by Muhammad Saddique , Senior Accounting & Finance Supervisor , Al Haitam For Industries & Economic Development

B) Relative size & Importance of Items,,.

Zahid Shafi Choudhri
by Zahid Shafi Choudhri , Senior Accountant - Owner Operator , MSC Accounting Services, Surrrey - British Columbia, Canada

B

SHINU SAM JOY
by SHINU SAM JOY , Accountant , Neat and Net LLC

B

Mohammed Hussain Shah
by Mohammed Hussain Shah , Finance Manager , Al-Naba Contracting Co. Ltd

B is the most appropriate choice.

Malik Khalid Mahmood
by Malik Khalid Mahmood , Regional Finance Manager , Leosons International FZ LLC

A)   thanks sir

Sameer Marji
by Sameer Marji , Finance manager (Head of Finance) , Seib Insurance & Reinsurance Company

Choice (B).

Deleted user
by Deleted user

B  is the answer

MALIIK SOHAIL ABBAS
by MALIIK SOHAIL ABBAS , ACCOUNTS MANAGER , AL RAWDAH GREEN SWEET WATER

CHOICE B IS THE MOST APPROPRIATE ANSWER

Lesley Lanag CMA CPA
by Lesley Lanag CMA CPA , Senior Accountant , Takaful Emarat Insurance (P.S.C)

B. To be considered material, we have to consider the amount/size of the item in consideration of the entire population. For instance, a few thousand expense item is immaterial to a million-dollar company.  But a misstatement of an immaterial amount  arising from fraud may be considered material to the company.

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