Although a garbage can that costs $25 is a long-term asset,it can be expensed because the amount is immaterial and will not affect anyone's decision making.

Question

Quizplus · Accepted Answer

The statement is true. When the cost of an asset is immaterial, it can be expensed rather than capitalized as a long-term asset. This means that it is recorded as an expense in the current period, rather than being depreciated over its useful life.

Although a Garbage Can That Costs $25 Is a Long-Term