Charging Off the Cost of a Wastebasket with an Estimated

question 96

Multiple Choice

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 quality.
• B) expense recognition principle.
• C) materiality quality.
• D) historical cost principle.

---

Definitions:

Surplus

The situation in which the quantity of a good supplied exceeds the quantity demanded at a specific price.

European Union

A political and economic union of 27 European countries that participate in a single market allowing free movement of goods, services, capital, and people.

Supply Curve

A graphical representation showing how the quantity of a good that producers are willing to supply changes as the price of the good changes.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a particular time frame.