- 1 Marks
FA – Mar/July 2020 – L1 – SA – Q12 – Accounting Concepts (e.g., Going Concern, Accruals, Materiality)
Identifying correct statements related to accounting concepts
Question
Which of the following statements is/are correct?
(i) Materiality means that only items having a physical existence may be recognised as assets.
(ii) 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.
(iii) The money measurement concept means that only an item capable of being measured in monetary terms can be recognised in financial statements.
A. I
B. I, II and III
C. I and II
D. II and III
E. III
Find Related Questions by Tags, levels, etc.
- Tags: Accounting Concepts, Materiality, Money Measurement, Substance Over Form
- Level: Level 1
- Topic: Accounting Concepts
- Series: MAR/JULY 2020
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