Recording the purchase price of a paper shredder (with an estimated useful life of 10 years)as an expense of the current period is justified by the
A) going-concern assumption.
B) materiality constraint.
C) matching principle.
D) comparability principle.

Question

Quizplus · Accepted Answer

The materiality constraint allows for the immediate expensing of small-dollar items that technically could be depreciated over time because their cost is insignificant relative to the overall financial statements, making the detailed tracking of their depreciation unnecessary for understanding the company's financial position.

Recording the Purchase Price of a Paper Shredder (With an Estimated