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:

Stare Decisis

A legal principle that mandates courts to follow the rulings of previous cases in similar circumstances, ensuring consistency and predictability in the law.

Legal Code

A systematic collection of laws or statutes that are articulated in a comprehensive manner.

Diplomatic Immunity

The privilege granted to diplomats by which they are not subject to the laws of the host country, ensuring their safety and effectiveness.

Rule of Law

The principle that all people and institutions are subject to and accountable to law that is fairly applied and enforced.