Hunsinger Enterprises purchases many small pieces of office furniture, such as trash cans, that cost less than $100 each. The company accounts for these items as expenses when acquired rather than reporting them as property, plant, and equipment on its balance sheet. The company's accountant states that no accounting principle has been violated. Justification for expensing these furniture items is based on cost vs. benefit considerations as well as the accounting constraint of

Question

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The justification for expensing these small items is based on materiality, as their cost is considered immaterial to the overall financial statements. Expensing these items also saves time and effort in tracking small assets.

Hunsinger Enterprises Purchases Many Small Pieces of Office Furniture, Such