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 of these are true.
D) None of these are true.

Question

Quizplus · Accepted Answer

An asset is indeed a cost that will be matched with revenues in a future accounting period, as it represents future economic benefits. Opportunity costs, however, are not recorded in financial statements as they are not actual transactions or assets.

Which of the Following Statements Is (Are) True