An accounting approach, in which the expected benefits exceed the expected cost is classified as ___________?
Correct answer: A. cost-benefit approach
- A. cost-benefit approach
- B. cost approach
- C. benefit approach
- D. accounting approachHire An Accountant
Explanation
A cost-benefit approach compares the expected benefits of an accounting system or decision with its expected costs, and is acceptable when benefits are greater. Neither benefit approach nor cost approach expresses this complete comparison.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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