A practical decision to expense a $120 printer rather than record it as property,plant,and equipment and depreciate it probably is made on the basis of the convention of
A)conservatism.
B)consistency.
C)materiality.
D)full disclosure.

Question

Quizplus · Accepted Answer

The decision to expense a $120 printer rather than record it as property, plant, and equipment and depreciate it is probably made based on the materiality concept. The materiality concept suggests that items of small value or cost that do not have a significant impact on financial statements can be treated as expenses rather than capitalizing them in order to simplify accounting procedures. In this case, the cost of the printer is not significant enough to warrant its inclusion as an asset in the balance sheet and to be depreciated annually over its useful life.

A Practical Decision to Expense a $120 Printer Rather Than