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This preview shows page 1 - 3 out of 3 pages. 5.5.Which principle/guideline justifies a company violating an accounting principlebecause the amounts are immaterial?ConservatismFull DisclosureMateriality6.6. Which principle/guideline is associated with the assumption that the company willcontinue on long enough to carry out its objectives and commitments?7.7. Get answer to your question and much more A very large corporation's financial statements have the dollar amounts rounded tothe nearest $1,000. Which accounting principle/guideline justifies not reporting theamounts to the penny? Get answer to your question and much more Monetary Unit8.8.Accountants might recognize losses but not gains in certain situations. For example,the company might write-down the cost of inventory, but will not write-up the cost ofinventory. Which principle/guideline is associated with this action?9.9. Get answer to your question and much more Which principle/guideline directs a company to show all the expenses related to itsrevenues of a specified period even if the expenses were not paid in that period?CostMatching Monetary Unit10.10.When the accountant has to choose between two acceptable alternatives, theaccountant should select the alternative that will report less profit, less asset Upload your study docs or become a Course Hero member to access this document End of preview. Want to read all 3 pages? Upload your study docs or become a Course Hero member to access this document 20 Questions | By Zsinmakkah | Last updated: Mar 22, 2022 | Total Attempts: 1567 Settings Feedback During the Quiz End of Quiz Difficulty Sequential Easy First Hard First Do you know anything about accounting principles and knowledge? Could you pass this quiz? Financial accounting is the branch of corporate accounting that identifies, records, and examines financial data for people outside of the company. Any data given by financial accounting includes quarterly and annual income statements, balance sheets, and cash flow statements of general earnings. If it all adds up you will pass this quiz.
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Back to top Which principle justifies that a company violating an accounting principle because the amounts are immaterial?The full disclosure principle requires businesses to disclose information that is relevant to the decisions of investors and creditors. When an amount is so small/immaterial an accountant may decide to ignore an accounting principle.
Which principle guideline allows a company to violate an accounting principle because the amounts are insignificant?Materiality. Because of this basic accounting principle or guideline, an accountant might be allowed to violate another accounting principle if an amount is insignificant. Professional judgement is needed to decide whether an amount is insignificant or immaterial.
What is considered immaterial in accounting?Immaterial is the description of an amount not impacting financial statements significantly. In other words, information is immaterial to an entity if it doesn't impact the financial decisions of users of an entity's financial statements.
What is materiality principle?Materiality is an accounting principle which states that all items that are reasonably likely to impact investors' decision-making must be recorded or reported in detail in a business's financial statements using GAAP standards.
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