Charging off the cost of a wastebasket 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

The materiality constraint allows companies to expense small, inexpensive items immediately rather than capitalizing them, as their impact on financial statements is negligible.

Charging Off the Cost of a Wastebasket with an Estimated