The Expression "There's No Such Thing as a Free Lunch

question 119

Multiple Choice

The expression "There's no such thing as a free lunch" means

• A)that even if the lunch is free, we pay for it in extra calories
• B)that resources used up in producing the lunch are not available to satisfy other wants
• C)the same thing as "The best things in life are free"
• D)you can eat only if you work first
• E)neither sea water nor air is free

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenues.

Gain Contingencies

Potential increases in assets or decreases in liabilities that may occur as a result of a future event, and which are acknowledged in financial statements if they are probable and can be reasonably estimated.

Footnote Disclosures

Explanatory notes added to the financial statements to provide more detailed information about certain figures.

Subsequent Events

Events occurring after the balance sheet date but before the financial statements are issued, which could materially affect the financial statements if not accounted for.