The principle that accountants do not have to account for every last item in strict accordance with the accounting rules is known as the:
A)relevance principle.
B)cost principle.
C)materiality principle.
D)going-concern principle.

Question

Quizplus · Accepted Answer

The materiality principle allows accountants to deviate from strict adherence to accounting rules if the financial impact of doing so would not significantly impact the overall accuracy and relevance of the financial statements. Essentially, if an item is not material or significant enough to affect the interpretation of the financial statements, it does not need to be accounted for in strict accordance with the rules.

The Principle That Accountants Do Not Have to Account for Every