When a Direct Cause-And-Effect Relationship Cannot Be Established Between Revenues

question 27

Multiple Choice

When a direct cause-and-effect relationship cannot be established between revenues and costs,the costs are

• A)not expensed and remain as assets on the balance sheet.
• B)expensed among the accounting periods that benefit from the costs.
• C)expensed immediately in their entirety.
• D)expensed equally each year.

---

Definitions:

Embryo

The early stage of development in many multicellular organisms, in humans it refers to the phase of development from conception until the eighth week of gestation.

Lungs

Organs in the respiratory system responsible for gas exchange, taking in oxygen and expelling carbon dioxide from the bloodstream.

Digestive System

A complex series of organs and glands responsible for the digestion and absorption of nutrients, and the expulsion of waste.

Cystic Fibrosis

A genetic disorder affecting the lungs and digestive system, characterized by thick, sticky mucus production.