Identify the accounting concept or principle that relates to the statement in the following question: If a particular item is,by reason of its nature or its size,significant to a proper understanding of the situation,it should be separately stated.
A) Relevance
B) Faithful representation
C) Materiality
D) Comparability

Question

Quizplus · Accepted Answer

Materiality is an accounting concept that requires significant items to be separately stated in financial statements because they are important to an accurate understanding of the financial situation. This ensures that users of financial statements are not misled by insignificant or immaterial amounts.

Identify the Accounting Concept or Principle That Relates to the Statement