Which of the following statements is true? A cost is:
A) always an expense.
B) always an asset.
C) can be either an expense or an asset.
D) always a liability.

Question

Quizplus · Accepted Answer

A cost can be classified as either an expense, which is a cost incurred in the normal operations of a business and is immediately charged against revenue, or an asset, which is a cost incurred for the acquisition of a long-term asset that will provide future benefits to the business. Therefore, cost can be either an expense or an asset depending on the nature of the cost.

Which of the Following Statements Is True? a Cost Is