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WAEC Accounting 2022 Objective — Question 11

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

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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 states that insignificant amounts should be written off as expenses rather than capitalized as assets.

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