Which accounting principle justifies treating a calculator as an expense rather than a fixed asset?
A. Materiality
B. Going Concern
C. Dual Aspect
D. Consistency
Answer: Option A
Solution (By JKSSB Mock Tests)
The Materiality principle states that trivial costs (like a calculator) should be expensed immediately rather than capitalized and depreciated, due to their immaterial impact.
Explanation:
Statement of Changes in Equity is typically a required component for corporate entities under Ind AS, not for standard sole proprietorships.
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