Expensing a $20 pencil sharpener rather than depreciating it over its useful life would result in a material misstatement of a company's financial statements.

Question

Quizplus · Accepted Answer

Expensing a low-cost item like a $20 pencil sharpener instead of depreciating it does not result in a material misstatement due to the immateriality of the amount relative to the company's overall financial statements.

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