PTG Enterprises purchases many small pieces of office furniture, such as trash cans, that cost less than $100 each. PTG accounts for these items as expenses when acquired rather than reporting them as property, plant, and equipment on its balance sheet. The company's accountant states that no accounting principle has been violated. Justification for PTG's policy of expensing these furniture items
is based on cost vs. benefit considerations as well as qualitative characteristic of accounting information of:
A) conservatism.
B) materiality.
C) reliability.
D) verifiability.
B
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The accountant for Darden Corp was preparing a bank reconciliation as of April 30, 2014 . The following items were identified: Allan's book balance $46,200 Outstanding checks 1,100 Interest earned on checking account 50 Customer's NSF check returned by the bank 500 In addition, Darden made an error in recording a customer's check; the amount was recorded in cash receipts as $150; the bank
recorded the amount correctly as $510 . What amount will Darden report as its adjusted cash balance at April 30, 2014? a. $44,650 b. $45,890 c. $46,110 d. $46,250
If tangible exchanges are missing in a leader-follower relationship, ______.
a. it would probably cause problems b. it probably would not cause problems c. intangible exchanges would replace them d. intangible exchanges would probably grow stronger
Give an example of how the recent economic downturn affected retailers' strategies
What will be an ideal response?
Which statement regarding gift giving is incorrect?
a. In Korea, business gifts are usually given at the beginning of formal negotiations. b. Avoid giving gifts to the French until a personal relationship has been developed. c. A striped tie is an appropriate gift for a British man. d. If you admire a personal possession of an Islamic host, you will probably receive the item admired.