Question

Which of the following is true regarding the income statement? The income statement is sometimes called the statement of operations The income statement reports revenue, expenses, and liabilities The income statement only reports revenue for which cash was received at the point of sale The income statement reports the financial position of a business at a particular point in time.

Which is the most correct answer that defines Opportunity Cost? The cost of already using an asset or a person already employed who was put on a new project. The cost of already using an asset by the firm The cost of already using a person on a new project. The cost of doing business of the firm

Answer 1

Which of the following is true regarding the income statement?

Answer: The income statement is sometimes called the statement of operations.

Which is the most correct answer that defines opportunity cost?

Answer; The cost of doing business of the firm.

The other three examples are examples of resources already deployed by the firm. The future costs of doing business are the opportunity costs, since such resources could have been deployed in some other avenue to earn a return.