Question

22. Which of the following statements is (are) true? 

1). An asset is a cost that will be matched with revenues in a future accounting period 

2). Opportunity costs are recorded as intangible assets in the current accounting period 

A. Only (1) is true. 

B. Only (2) is true 

C. Both (1) and (2) are true

23. Which of the following statements is (are) false? 

(1). In general, the term expense is used for managerial purposes, while the term cost refers external financial reports. 

(2). An opportunity cost is the benefit forgone by selecting one alternative over another. 

A. Only (1) is false. 

B. Only (2) is false. 

C. Both (1) and (2) are false. 

D. Neither (1) nor (2) are false.

Answer 1

22.

A. Only (1) is true,

as opportunity costs are not recorded at all, they are just used for costing purposes.

23.

A. Only (1) is false,

the definition of opportunity cost is correct.