Concept:Materiality permits treating insignificant items as expenses, even if they last beyond one year.
Explanation:Under the materiality concept, only items that can influence a user’s decision must follow strict accounting principles.
Kitchen cutlery has a low value, so its cost is considered immaterial.
Even though it may be used for more than one year, the cost of recording depreciation would outweigh its benefit.
Therefore, accountants immediately expense such small-value items to keep records simple and accurate.
This treatment does not mislead readers of the financial statements.
Answer:Option A – Materiality.