Which of the Following Statements Is True

question 116

Multiple Choice

Which of the following statements is true?

• A)The opportunity cost of a decision is equal to the explicit cost in monetary terms.
• B)The opportunity cost of a decision is the value of the best foregone alternative.
• C)Some economic decisions have zero opportunity cost.
• D)The opportunity cost of attending college is the same for all students at the same university but may differ among students at different universities.
• E)None of the above statements are true.

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Definitions:

Balance Sheet Account

An account found on the balance sheet, which is one of the three principal financial statements; these accounts include assets, liabilities, and shareholders' equity.

Depreciation Expense

The portion of the cost of an asset that is allocated as an expense over its useful life, reflecting the decrease in value over time.

Overstate Assets

Reporting a company's assets at a value higher than their actual worth, which can inaccurately represent financial health.

Unearned Revenue Account

An account representing cash received for goods or services not yet provided; considered a liability until the service or product is delivered.