The full disclosure principle allows us to record an asset costing $50 as a revenue expenditure

Name: The full disclosure principle allows us to record an asset costing $50 as a revenue expenditure
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The full disclosure principle requires that financial statements disclose all material facts, so recording an asset as a revenue expenditure would not be in accordance with this principle. Assets are typically recorded as a capital expenditure and depreciated over their useful life.

The Full Disclosure Principle Allows Us to Record an Asset