Long Corporation has adopted the policy of charging to expense at the time of purchase all assets having a cost of less than $200, regardless of the life expectancy of the asset. This policy is most closely related to the
A) historical cost principle
B) period-of-time assumption
C) verifiability principle
D) materiality principle
D
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What will be an ideal response?
Monica's husband is an accountant who keeps the books for her business. When it goes bankrupt, will Monica's husband's claim for services be allowed by the bankruptcy courts?
a. No, since he is an insider. b. No, because it would be difficult to prove that services were actually rendered. c. Yes, but only up to the reasonable value. d. Yes, as long as he is not an officer of the corporation.
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Indicate whether the statement is true or false
On September 30 of the current year, a company acquired and placed in service a machine at a cost of $700,000. It has been estimated that the machine has a service life of five years and a salvage value of $40,000. Using the double-declining-balance method of depreciation, complete the schedule below showing depreciation amounts for all six years (round answers to the nearest dollar). The company closes its books on December 31 of each year. YearDepreciation for the PeriodEnd of Period?Beginning ofPeriod BookValueDepreciationRateDepreciationExpenseAccumulatedDepreciationBookValue1?????2?????3?????4?????5?????6?????
What will be an ideal response?