The recognition of periodic amortization expense on company-owned automobiles requires estimating both salvage or residual value, and the useful life of the vehicles. The use of estimates in this case is an example of:
A) Conservatism
B) Maintaining consistency
C) Invoking the materiality constraint rather than the cost benefit constraint
D) Providing relevant data at the expense of reliability
E) None of these answers are correct.

Question

Quizplus · Accepted Answer

The Answer of The recognition of periodic amortization expense on company-owned automobiles requires estimating both salvage or residual value, and the useful life of the vehicles. The use of estimates in this case is an example of:
A) Conservatism
B) Maintaining consistency
C) Invoking the materiality constraint rather than the cost benefit constraint
D) Providing relevant data at the expense of reliability
E) None of these answers are correct.

The Recognition of Periodic Amortization Expense on Company-Owned Automobiles Requires