Which Financial Statement Assumption Relates to the Procedure Where a $200

question 3

Multiple Choice

Which financial statement assumption relates to the procedure where a $200 paper shredder with a five-year useful life is treated as an expense?

• A) Monetary
• B) Accounting period
• C) Materiality
• D) Historical cost

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Definitions:

Direct Method

A method of reporting cash flows from operating activities in the statement of cash flows that lists major classes of gross cash receipts and payments.

Surgery Department

A specialized division within a hospital where surgical procedures are carried out.

Telecommunications Ports

Physical and virtual connection points used for interfacing different types of telecommunications equipment or networks.

Employees

Individuals who work under a contract of employment, contributing labor in exchange for receiving a salary or wage.