The Principle That States That the Cost of Something Is

question 149

Multiple Choice

The principle that states that the cost of something is equal to what is sacrificed to get it is known as the

• A) marginal principle.
• B) principle of opportunity cost.
• C) principle of diminishing returns.
• D) reality principle.

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Definitions:

Notes Payable

Written promises to pay a specific sum of money on a certain date or dates, classified as a liability on the balance sheet.

Service Revenue

Income earned by a company for services rendered to clients or customers.

Unearned Service Revenue

Refers to the money received by a company for services it has yet to render.

Temporary Accounts

Accounts that track transactions within a fiscal period and are reset to zero at the start of the next period, including revenues, expenses, and dividends.