The accounting principle that states that insignificant expenditures are not to be taken into account is the

The accounting principle that states that insignificant expenditures are not to be taken into account is the materiality convention. This principle suggests that only significant information and transactions should be recorded in the financial statements, as small or insignificant items are unlikely to impact the financial decision-making process of users. In other words, the materiality convention allows accountants to use their judgement to determine whether an item is large enough to be recorded in the financial statements or can be disregarded. This principle helps to ensure that the financial statements remain relevant and useful to users, as they focus on the significant aspects of the entity's financial performance and position.