The accounting principle that states that insignificant expenditures are not to be taken into account is the
-
A.
realization concept -
B.
materiality convention -
C.
marching concept -
D.
consistency convention
Correct Answer: Option B
Explanation
This accounting convention proposed that while accounting, only those transactions which have material impact on financial status of the organization will be considered and other transactions which have insignificant effect will be ignored. It gives relative importance to an item or event.