When an $30 Asset with a Six-Year Estimated Useful Life

question 45

Multiple Choice

When an $30 asset with a six-year estimated useful life is recorded as an expense at the date of purchase, this is an application of the:

• A) matching principle.
• B) cost principle.
• C) unit-of-measure assumption.
• D) materiality constraint.
• E) None of these answers are correct.

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Definitions:

Cholesterol

A waxy, fat-like substance that's found in all the cells in your body, where it's used to make hormones, Vitamin D, and substances that help you digest foods. Your body needs some cholesterol to function properly.

Glycolipids

Lipids with a carbohydrate attached by a glycosidic bond, playing a role in cell recognition and membrane structure.

Glycoproteins

Glycoproteins are proteins that have oligosaccharide chains (glycans) covalently attached to some of their amino acid residues, playing a critical role in cell-cell interactions and immune function.

Cell Recognition

A biological mechanism through which cells identify and interact with each other, playing a critical role in immune response, cellular adhesion, and communication.