Final answer:
The materiality concept states that companies must perform proper accounting for items that are significant to the financial statements, allowing them to disregard trivial matters in accounting processes.
Step-by-step explanation:
The answer to the question, which asks which of the following states that a company must perform strictly proper accounting only for items that are significant to the business's financial statements, is:
b. materiality concept.
The materiality concept is an accounting principle stating that financial information is material, and thus needs to be disclosed and strictly accounted for if its omission or misstatement could influence the economic decisions of users taken based on the financial statements. This principle allows companies to disregard trivial matters that would not influence the decisions of a reasonable person, simplifying their accounting processes. On the other hand, material and relevant information must be presented clearly and concisely for proper analysis and understanding.
In contrast, the accounting principle is a broad term that encompasses an array of concepts and guidelines for financial reporting, while the disclosure principle mandates that all financial facts significant enough to influence the judgments of informed readers should be disclosed in a company's financial reports.