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CPA practice questions and answers

Doug’s Doohickeys sells hardware. His sales have finally reached $1,000,000 annually after years of hard work. Now his accountant has discovered a mistake-Doug misclassified a $2 expense several months ago. His accountant decides to ignore it. What accounting concept does he use to justify this? Mark one answer:

(A)The going concern concept

(B)The materiality concept

(C)The money measurement concept

(D)The matching concept

(E)The time is money concept

The Correct Answer
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