40. does the accounting concept of materiality allow a large, profitable company to expense immediately the…

40. does the accounting concept of materiality allow a large, profitable company to expense immediately the $1,000 cost of a depreciable asset (instead of depreciating the asset over its useful life)? select... yes no

40. does the accounting concept of materiality allow a large, profitable company to expense immediately the $1,000 cost of a depreciable asset (instead of depreciating the asset over its useful life)? select... yes no

Answer

Brief Explanations:

The materiality concept in accounting states that an item can be accounted for in a simplified way if its impact on financial statements is not significant. For a large, profitable company, a $1,000 cost of a depreciable asset may be immaterial. So, it can be immediately expensed instead of depreciating over its useful life.

Answer:

Yes