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Steve is in charge of accounting for the purchase of equipment at Cal Works, Incorporated....

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Accounting

Steve is in charge of accounting for the purchase of equipment at Cal Works, Incorporated. The company has a policy that all expenditures greater than $1,000(1% of total expenditures) have to be capitalized; less than $1,000 expensed. Steve is under pressure to report high earnings. He takes one $600 and $900 expenditure, adds them together, and records a capital expenditure for $1,500. Which of the following reasons and rationalizations might Steve use for his action
Multiple Choice
one-time request.
standard Practice.
representational faithfulness.
materiality.

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