Chapter 2, Problem 2.1AP

1.

To determine

Concept Introduction:As per materiality principle, company should records or shows only those information or data in books of accounts which are material for the business and for the purpose of accounting. All unnecessary information must not be recorded in books of accounts.

To explain: Whether the information gathered by employee is useful.

2.

To determine

Concept Introduction:As per materiality principle company should records or shows only those information or data in books of accounts which are material for the business and for the purpose of accounting. All unnecessary information must not be recorded in books of accounts.

To Explain: Whether the information gathered by employee is useful for hardware or real-estate company.