Recording the Purchase Price of a Pencil Sharpener (With an Estimated

question 71

Multiple Choice

Recording the purchase price of a pencil sharpener (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.

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Definitions:

Richard Hackman

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A psychological theory that proposes there are two factors influencing job satisfaction and dissatisfaction: hygiene factors and motivators.

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Additional benefits, beyond a wage or salary, provided by an employer to their employees, such as health insurance, paid vacation, and retirement plans.