The Materiality Principle

The materiality principle:

A) Permits use of the direct write-off method.
B) States that an amount can be ignored if its effect on financial statements is unimportant to the user.
C) Prohibits use of the direct write-off method.
D) States that an amount can be ignored if its effect on financial statements is unimportant to the user and permits use of the direct write-off method.
E) Both permits and prohibits use of the direct write-off method.

Correct Answer:

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