Low immaterial-cost items that will benefit several accounting periods:
A)are recorded as an asset and depreciated over their useful life
B)are recorded as expenses instead of assets,as they are not material amounts
C)are matched with income over several accounting periods
D)are added to the overall cost of property,plant and equipment

Question

Quizplus · Accepted Answer

Low immaterial-cost items that will benefit several accounting periods are typically recorded as expenses instead of assets due to their immaterial amounts. This approach simplifies accounting processes and aligns with the materiality principle, avoiding the unnecessary complication of tracking and depreciating small-value items over time.

Low Immaterial-Cost Items That Will Benefit Several Accounting Periods