Materiality: Defines the level to which certain accounting principles do not apply

  • Rounding on financial statements to the nearest dollar, or in some cases to the nearest million dollars, may not be material, depending on the size of the company
  • Immaterial may refer to items that may violate an accounting principle but not change the overall interpretation by the end user
N_19F_Materiality

AccountingPlay Apps

Learn Accounting Faster and Easier

Learn financial accounting, debits & credits, and business tax easier with flashcards, mobile apps, and games. Learn accounting anytime and anywhere. AccountingPlay will help you learn in a fast and fun way. Available on iOS and Android

Premium Courses

One Time Payment. Lifetime Access.

Learn more comprehensively about debits and credits, financial accounting, Excel fundamentals, business tax prep & plan, CPA tax prep, and how to start and grow your business right. Get access to all of our books, spreadsheets, academic papers, cheat sheet, audio vault, videos, and more.

Recommended Tools

One of your top priorities as a small business owner is keeping a close eye on the money you bring in and pay out, which is why it’s critical to have the right accounting software. You need a program that helps you accomplish your daily accounting tasks. Here are our best picks for tools we recommend and use.

« Back to Glossary Index