Charging off the cost of a calculator with an estimated useful life of 10 years as an expense of the period when purchased is an example of the application of the
A) consistency characteristic.
B) matching principle.
C) materiality constraint.
D) historical cost principle.

Question

Quizplus · Accepted Answer

This is an example of the materiality constraint, which allows for the immediate expensing of small-dollar items that technically could be depreciated over time because their cost is not significant enough to impact financial decisions.

Charging Off the Cost of a Calculator with an Estimated