Costs recognized in particular situations that are NOT recognized by accrual accounting procedures are:
A)opportunity costs
B)imputed costs
C)cash accounting costs
D)None of these answers is correct.

Question

Quizplus · Accepted Answer

Accrual accounting only recognizes actual expenses incurred in conducting business operations, while imputed costs represent hypothetical expenses that are not directly incurred. Therefore, imputed costs are not recognized by accrual accounting procedures. Option A (opportunity costs) and Option C (cash accounting costs) are not relevant in this context as they are recognized by accrual accounting procedures. Option D is an incorrect statement.

Costs Recognized in Particular Situations That Are NOT Recognized by Accrual