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.

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Definitions:

Commercial Fisherman's Coop

A cooperative organization established by commercial fishermen to provide mutual benefits such as marketing, purchasing supplies, and advocating for fishermen's interests.

Goods

Items or merchandise that are produced for sale or use.

Contract

A legally binding agreement between two or more parties that is enforceable by law.

Risk of Loss

Risk of loss refers to the legal and financial responsibility for the damage, destruction, or loss of property, often determined by the terms of a contract.