Which of the Following Is/are True

question 87

Multiple Choice

Which of the following is/are true?

• A)Revenues measure the inflow of net assets from operating activities.
• B)Expenses measure the outflow of net assets consumed in the process of generating revenues.
• C)Recognizing revenues and expenses always involves a simultaneous entry in an asset and/or liability account.
• D)Adjusting entries almost always involve an entry in at least one income statement and one balance sheet account.
• E)All of the above are true.

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Definitions:

Comparative Advantage

The proficiency of an entity, whether it's an individual, corporate body, or state, to create a good or offer a service at a more economical opportunity cost than its competition.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing a particular course of action.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, leading to more efficient global production patterns.

Specialize

The process of focusing efforts and resources on a narrow area of expertise to increase efficiency and proficiency.