Which of the Following Statements Is NOT True

question 115

Multiple Choice

Which of the following statements is NOT true?

• A) A cost may be defined as a sacrifice or giving up of resources for a particular purpose.
• B) Costs are frequently measured by the monetary units that must be paid for goods and services.
• C) Costs are shown on the income statement.
• D) Costs are initially recorded in elementary form.

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Definitions:

Current Ratio

A financial metric used to evaluate a company's ability to pay off its short-term liabilities with its short-term assets.

Current Liabilities

Short-term financial obligations that a company owes and is expected to pay within one year or within the normal operating cycle.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, whichever is longer.

Cash Flow

The total amount of money being transferred into and out of a business, affecting its liquidity.