Which of the following statements is/are correct? 1 Materiality means that only items having a physical...
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Which of the following statements is/are correct? 1 Materiality means that only items having a physical existence may be recognised as assets. 2 The substance over form convention means that the legal form of a transaction must always be shown in financial statements even if this differs from the commercial effect. 3 The accruals basis means that sales are recognised in the accounts as they occur and not when the cash is received * 1 only O 1, 2 and 3 3 only O 2 only. Which of the following statements is/are correct? 1 Materiality means that only items having a physical existence may be recognised as assets. 2 The substance over form convention means that the legal form of a transaction must always be shown in financial statements even if this differs from the commercial effect. 3 The accruals basis means that sales are recognised in the accounts as they occur and not when the cash is received * 1 only O 1, 2 and 3 3 only O 2 only.
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Answer Correct Answer option 3 only Explanation i Option 1 Wrong Materiality denotes the significan... View the full answer
Related Book For
Horngrens Financial and Managerial Accounting The Financial Chapters
ISBN: 978-0134486857
6th edition
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
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