Charging the cost of a wastebasket with an estimated useful life of 10 years to an expense account when purchased is an example of the application of
A) the historical cost principle.
B) the matching principle.
C) the materiality constraint.
D) the full disclosure principle.

Question

Quizplus · Accepted Answer

The materiality constraint allows for ignoring the matching principle for items of small value or short-term use, like a wastebasket, because they have an insignificant impact on financial statements. Charging it as an expense simplifies accounting without materially affecting the financial outcome.

Charging the Cost of a Wastebasket with an Estimated Useful