Button Transportation purchases many pieces of office furniture with an individual cost below $200 each. Button chooses to account for these expenditures as expenses when acquired rather than reporting them as property, plant, and equipment on its balance sheet. The company's accountant and independent CPA agree that no accounting principle has been violated. What accounting justification allows Button to expense the furniture? a. Conservatism b. Matching c. Materiality d. Verifiability
Button Transportation purchases many pieces of office furniture with an individual cost below $200 each. Button chooses to account for these expenditures as expenses when acquired rather than reporting them as property, plant, and equipment on its balance sheet. The company's accountant and independent CPA agree that no accounting principle has been violated. What accounting justification allows Button to expense the furniture? a. Conservatism b. Matching c. Materiality d. Verifiability
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Button Transportation purchases many pieces of office furniture with an individual cost below
$200 each. Button chooses to account for these expenditures as expenses when acquired rather
than reporting them as property, plant, and equipment on its
accountant and independent CPA agree that no accounting principle has been violated. What
accounting justification allows Button to expense the furniture?
a. Conservatism
b. Matching
c. Materiality
d. Verifiability
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