Although the Terms Cost and Expense Are Often Used Synonymously

question 13

Multiple Choice

Although the terms cost and expense are often used synonymously there is a difference between them. A cost can be an asset or an expense whereas an expense is:

• A) where the future economic benefits have not expired.
• B) the consumption or loss of resources that will result in a decrease in equity.
• C) used to run the business.
• D) paid out in cash.

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Definitions:

Oceanic Trench

Deep, narrow depressions in the ocean floor, often formed at subduction zones where one tectonic plate is forced beneath another.

Magmatic Belt

A zone abundant in igneous rocks, typically associated with plate boundaries where magma activities are prevalent.

Passive Margin

The transition zone between oceanic and continental lithosphere that is not an active plate margin.

Nuclear Power Plant

A facility that generates electricity using nuclear reactions, typically through the process of nuclear fission, in a controlled environment.