Which Statement Concerned with Establishing the Costs and Benefits of Accounting

question 58

Multiple Choice

Which statement concerned with establishing the costs and benefits of accounting information is true?

• A)It is usually easier to establish the benefits than the costs.
• B)It is normally easy to establish both the costs and the benefits.
• C)Both the costs and benefits are normally difficult to assess.
• D)The costs and benefits should be ignored when deciding on what accounting information should be produced.

---

Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed by the government.

Sales Tax

A consumption tax imposed by the government on the sale of goods and services.

Valuation Rate

The estimated or assessed value of an asset or liability for accounting and tax purposes.

Market Value

The current price at which an asset or service can be bought or sold in a market.