Which one of the following statements regarding the GAAP Logic Principles is not

Question

Which one of the following statements regarding the GAAP Logic Principles is not correct?

Following the Revenue Principle and the Matching Principle will result in an accurate net income. The Materiality Principle allows for charging to expense small dollar items that have useful lives of several years. The Conservatism Principle allows for capitalizing items as assets which may not be useful in future periods. The Cost Principle states that items should normally be recorded at cost when initially purchased.

Explanation / Answer

The Conservatism Principle allows for capitalizing items as assets which may not be useful in future periods.

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