A Practical Decision to Expense Small Capital Expenditures Rather Than

question 103

Multiple Choice

A practical decision to expense small capital expenditures rather than record them as property, plant, and equipment and depreciate them probably is made on the basis of the convention of

• A) conservatism.
• B) consistency.
• C) materiality.
• D) full disclosure.

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Definitions:

Peaches

Edible juicy fruits with fuzzy skins and a sweet taste, often grown in temperate regions.

Absolute Advantage

The skill of a person, business, or nation to generate a product or offer a service more affordably per unit than any other competitor.

Cell Phones

Portable electronic devices used for communication purposes.

Herring

A type of fish that is widely consumed and known for its significant role in the marine food chain as well as its usage in various cuisines.