Although a stapler that costs $15 is a long-term asset,can be expensed because the amount is immaterial and will not affect anyone's decision making.

Question

Quizplus · Accepted Answer

The principle of materiality allows for recording insignificant items as expenses rather than as assets to simplify record-keeping and to avoid insignificant costs of record-keeping. The cost of a stapler is an immaterial item that can be expensed, even though it is a long-term asset. This will not affect anyone's decision-making process.

Although a Stapler That Costs $15 Is a Long-Term Asset,can