Answered

Welcome to Westonci.ca, your ultimate destination for finding answers to a wide range of questions from experts. Ask your questions and receive detailed answers from professionals with extensive experience in various fields. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

Question 4:
LMN Inc. does not record small expenses separately because they are considered
insignificant. This is an application of the:
A) Prudence principle
B) Materiality principle
C) Revenue recognition principle
D) Consistency principle

Sagot :

GinnyAnswer

Final answer:

The Materiality principle guides LMN Inc. in not recording small expenses separately, ensuring only significant financial data is included.


Explanation:

Materiality principle is applied when a company like LMN Inc. decides not to record small expenses separately because they are considered insignificant. This principle states that financial information should only include significant data that would influence the decisions of financial statement users.


Learn more about Accounting principles here:

https://brainly.com/question/50658446


Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.