Which of the Following Serves as the Justification for the Periodic

question 16

Multiple Choice

Which of the following serves as the justification for the periodic recording of amortization expense?

• A)Association of efforts (expense) with accomplishments (revenue)
• B)Systematic and rational allocation of cost over the periods benefited
• C)Immediate recognition of an expense
• D)Minimization of income tax liability

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Definitions:

Deadweight Loss

When a good or service's free market equilibrium is not met, a reduction in economic efficiency occurs.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefit to society from the production and consumption of goods and services.

Tariff or Quota

A government-imposed restriction on the quantity of goods that can be imported (quota) or a tax levied on imported goods (tariff).

Domestic Consumers

People or family units in a nation who buy products and services for their own consumption.