NECO Accounting 2022 Objective — Question 11

Question 11 of 50 from the National Examinations Council (NECO) Accounting 2022 Objective paper, with the correct answer and a full explanation.

The accounting concept which states that expenditure involving insignificant amounts should be regarded as expenses and not assets is

A. business entity concept
B. materiality conceptCorrect
C. dual aspect concept
D. realization concept

Explanation

The materiality concept ensures only transactions significant to user decision-making are separately recorded as assets; insignificant amounts are treated as expenses.

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