Which of These Statements Is Not Correct

question 45

Multiple Choice

Which of these statements is not correct?

• A) An expense is the consumption or loss of resources that will result in a decrease in equity.
• B) A cost that provides future economic benefits is treated as an asset.
• C) To accountants the terms cost and expense always mean the same thing.
• D) Many costs eventually become expenses.

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Definitions:

Alternative Therapies

Health treatments not widely taught in medical schools, not generally used in hospitals, and typically not reimbursed by medical insurance companies.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership of the company and usually rights to dividends and voting on corporate matters.

HMOs

Health Maintenance Organizations; a type of health insurance plan that provides healthcare services to members through a network of doctors, hospitals, and other healthcare providers.

Americans

Residents or citizens of the United States, although the term can also broadly refer to people from the American continent.