Which of the following statements is/are correct? 1 Materiality means that only items having a physical existence may be recognised as assets. 2 The substance over form convention means that the legal form of a transaction must always be shown in financial statements even if this differs from the commercial effect. 3 The accruals basis means that sales are recognised in the accounts as they occur and not when the cash is received * 1 only O 1, 2 and 3 3 only O 2 only.