The Titanic Hit an Iceberg and Sank

question 82

Multiple Choice

The Titanic hit an iceberg and sank.In deciding whether or not to salvage the ship,what is its book value?

• A)a relevant cost
• B)a sunk cost
• C)an opportunity cost
• D)a discretionary cost

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Definitions:

Cheques

A written, dated, and signed instrument that contains an unconditional order directing a bank to pay a definite sum of money to a payee.

Deposit

A sum of money placed or kept in a bank account, often to gain interest.

Balance

Balance refers to the amount of money in a financial account, or the equality between the sum of debits and credits in an account.

Account

A record or statement of financial expenditure and receipts relating to a particular period or purpose or the contractual arrangement under which an entity manages the funds of another.