In Order for Costs or Benefits to Be Relevant, What

question 37

Multiple Choice

In order for costs or benefits to be relevant, what must be true?

• A)All decisions must relate to future.
• B)Identifying relevant costs and benefits is an easy process.
• C)Relevancy will relate both to the future and the past.
• D)all of the above are true statements.

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Definitions:

Closing Entries

These are journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts and prepare the company's books for the next period.

Permanent Accounts

These are balance sheet accounts whose balances are carried over to the next accounting period, such as assets, liabilities, and equity accounts.

Income Summary Account

A temporary account used in accounting to transfer the sums of revenues and expenses at the end of an accounting period.

Dividends Declared Account

An account used to record the amount of dividends that a company's board of directors has decided to distribute to its shareholders.