Cost That Has Been Incurred in the Past Is Referred

question 68

Multiple Choice

Cost that has been incurred in the past is referred to as

• A)An avoidable cost.
• B)A sunk cost.
• C)An opport
• D)A relevant cost.

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Definitions:

Analyzing Transactions

The process of examining financial transactions to determine their impact on the financial status of an entity.

Ledger

A detailed financial statement showing all the transactions of a business, used to compile the financial statements.

Unadjusted Trial Balance

A list of all the general ledger accounts and their balances at a specific time before any adjusting entries are made.

Accounting Cycle

The collective process of recording and processing all financial transactions of a company, from when the transaction occurs, to its representation on financial statements, followed by closure of accounts.