Opportunity Costs

question 100

Multiple Choice

Opportunity costs:

• A)​only include explicit costs paid out-of-pocket.
• B)​never involve costs paid out-of-pocket.
• C)​may or may not involve costs paid out-of-pocket.
• D)​are always measured in terms of time.

---

Definitions:

Offset Side

The side of a transaction that counterbalances the primary entry, ensuring the accounting equation remains balanced.

Increase Side

The side of an account on which increases are recorded, depending on the type of account it could be the debit or credit side.

Right Side

In accounting, refers to the credit side of a ledger account, opposite to the left or debit side, showcasing the sources of funds or increases in liabilities or equity.

Decrease Side

The side of an accounting equation or ledger where decreases in assets, expenses, or dividends are recorded, often the credit side for assets and the debit side for liabilities and equity.