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Practicing Success
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| Which accounting convention deals with small items like pens, paper, pencils, etc? |
Money measurement postulate Convention of materiality Going concern concept Convention of conservatism |
| Convention of materiality |
| The convention of materiality is followed in dealing with small items like pencils, pens, postage stamps, etc. These items are treated as expenditure in the year in which they are purchased even though they are assets in nature. The stationery is valued at cost and not on the principle of cost or market price, whichever is less. |
