Cost-Benefit Analysis

question 59

Multiple Choice

Cost-benefit analysis

• A)is influenced by value judgments.
• B)considers only short-term effects.
• C)values costs over benefits.
• D)is a value-free social-scientific approach.

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Definitions:

Expense Recognition Principle

An accounting principle that dictates expenses should be recognized in the same period as the revenues they helped to generate, ensuring financial statements accurately reflect business activities.

Asset Valuation Principle

A principle in finance that entails estimating the current worth of an entity's assets, considering market value, use value, and other factors.

Historical Cost Principle

A fundamental accounting rule stating that assets must be logged and presented at the cost they were originally bought for.

Going Concern Principle

An accounting assumption that a company will continue operating and not go bankrupt or be liquidated in the foreseeable future.