Long Corporation Has Adopted the Policy of Charging to Expense

question 81

Multiple Choice

Long Corporation has adopted the policy of charging to expense at the time of purchase all assets having a cost of less than $200, regardless of the life expectancy of the asset. This policy is most closely related to the

• A) historical cost principle
• B) period-of-time assumption
• C) verifiability principle
• D) materiality principle

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Definitions:

Double Standard

The application of different sets of principles for similar situations or people, often leading to unequal treatment based on gender, race, or another criterion.

Chronic Illnesses

Long-term health conditions that often require ongoing management through medication, lifestyle adjustments, and other treatments.

Physical Health

The condition of a person's body, including the absence of illness or injury, often maintained through regular exercise, a balanced diet, and adequate rest.

Middle Life

A period of human life, typically between young adult and old age, marked by the presence of mid-life transitions and reevaluations.