Charging off the cost of a wastebasket with an estimated useful life of 10 years as an expense of the period when purchased is an example of the application of the
A) consistency characteristic.
B) expense recognition principle.
C) materiality quality.
D) historical cost principle.

Question

Quizplus · Accepted Answer

The materiality quality allows for the immediate expensing of small-dollar items, like a wastebasket, even if they have a useful life of more than one year, because the cost is insignificant relative to the overall financial statements.

Charging Off the Cost of a Wastebasket with an Estimated