Although the Terms Cost and Expense Are Often Used Synonymously

question 25

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

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Definitions:

Schachter's Two-factor Theory

A psychological theory proposing that emotion arises from physiological arousal and cognitive labeling of the cause of that arousal.

Emotional Experience

A subjective feeling state, often accompanied by physiological changes and behaviors, influenced by individual perceptions and cultural context.

Primary Reaction

The initial response or action taken immediately after being exposed to a stimulus, before any learning or adaptation has occurred.

James-Lange Theory

A theory of emotion proposing that emotions result from our interpretations of our bodily reactions to stimuli.