Tom's Ware donated 100 T-shirts to the local high school.The company will record the donation as an operating expense.The shirts cost Tom's Ware $6.00 each and the company usually sells them for $10.50.If Tom's Ware reports a charity expense of $1,050,this accounting choice would be considered ________.

Question

Quizplus · Accepted Answer

Tom's Ware is recording the donation at the cost of the shirts, which is a conservative accounting choice.

Tom's Ware Donated 100 T-Shirts to the Local High School