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Please grandpa I need help I just got fired for not knowing what materiality or neutrality was.

Why me

Well it's when Business transactions are recorded in accounting

records and reported in financial statements in dollar

amounts. How the amounts are recorded and reported

depends on the amount involved and the relative impor-

tance of the item in making business decisions. Dollar

amounts that are large will generally be considered in

making decisions about future operations. A separate

accounting record is kept for items with dollar amounts

large enough to be considered in making decisions about

future operations. Dollar amounts that are small and

not considered important in decision making may be

combined with other amounts in the accounting records

and financial statements

and neutrality is many accounting functions require a business to use

estimates. These include the estimation of uncollectible

accounts receivable and the assignment of a useful life

and salvage value for a plant asset. A business must not

set or alter these estimates to achieve some other goal,

such as reducing net income to avoid income taxes.For

example, a business could raise its estimate of uncollect-

ible accounts receivable to reduce its operating income

subject to income tax. However, in compliance with the

neutrality principle, the book value of accounts receiv-

able in the financial accounts must always be a reason-

able and unbiased estimate of the money the business

expects to collect in the future.

Thanks

Please grandpa I need help I just got fired for not knowing what materiality or neutrality was.

Why me

Well it's when Business transactions are recorded in accounting

records and reported in financial statements in dollar

amounts. How the amounts are recorded and reported

depends on the amount involved and the relative impor-

tance of the item in making business decisions. Dollar

amounts that are large will generally be considered in

making decisions about future operations. A separate

accounting record is kept for items with dollar amounts

large enough to be considered in making decisions about

future operations. Dollar amounts that are small and

not considered important in decision making may be

combined with other amounts in the accounting records

and financial statements

and neutrality is many accounting functions require a business to use

estimates. These include the estimation of uncollectible

accounts receivable and the assignment of a useful life

and salvage value for a plant asset. A business must not

set or alter these estimates to achieve some other goal,

such as reducing net income to avoid income taxes.For

example, a business could raise its estimate of uncollect-

ible accounts receivable to reduce its operating income

subject to income tax. However, in compliance with the

neutrality principle, the book value of accounts receiv-

able in the financial accounts must always be a reason-

able and unbiased estimate of the money the business

expects to collect in the future.

Thanks

Please grandpa I need help I just got fired for not knowing what materiality or neutrality was.

Why me

Well it's when Business transactions are recorded in accounting

records and reported in financial statements in dollar

amounts. How the amounts are recorded and reported

depends on the amount involved and the relative impor-

tance of the item in making business decisions. Dollar

amounts that are large will generally be considered in

making decisions about future operations. A separate

accounting record is kept for items with dollar amounts

large enough to be considered in making decisions about

future operations. Dollar amounts that are small and

not considered important in decision making may be

combined with other amounts in the accounting records

and financial statements

and neutrality is many accounting functions require a business to use

estimates. These include the estimation of uncollectible

accounts receivable and the assignment of a useful life

and salvage value for a plant asset. A business must not

set or alter these estimates to achieve some other goal,

such as reducing net income to avoid income taxes.For

example, a business could raise its estimate of uncollect-

ible accounts receivable to reduce its operating income

subject to income tax. However, in compliance with the

neutrality principle, the book value of accounts receiv-

able in the financial accounts must always be a reason-

able and unbiased estimate of the money the business

expects to collect in the future.