The Expensing of a Long-Lived Asset Such as a Wastebasket

question 191

Multiple Choice

The expensing of a long-lived asset such as a wastebasket is justified by which of the following accounting rules or principles?

• A) Matching
• B) Materiality
• C) Cost-benefit
• D) Conservatism

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Definitions:

Ego

In psychoanalytic theory, the part of the personality that balances the demands of the id, superego, and reality.

Id

A component of Freud's model of the psyche that is responsible for instinctual drives and operates based on the pleasure principle.

Aggressive Desires

Internal urges or tendencies towards hostility, confrontation, or exerting dominance over others or situations.

Pleasure Principle

In psychoanalytic theory, the driving force of the id that seeks immediate gratification of all desires, wants, and needs.