Asked by Trenton Henderson on Jul 02, 2024
Verified
Costs that are incurred to obtain future benefits beyond 12 months are known as:
A) assets.
B) liabilities.
C) revenue.
D) expenses.
Future Benefits
The anticipated positive outcomes or returns that are expected to be received in the future as a result of current investments or actions.
Liabilities
Financial obligations or debts owed by a business to others, such as loans, accounts payable, and mortgages, which need to be settled over time.
- Differentiate among various production costs and their methods of accounting.
Verified Answer
SN
Simphiwe Nxumalo6 days ago
Final Answer :
A
Explanation :
Assets are costs incurred that provide future economic benefits beyond 12 months, such as property, plant, and equipment, or intangible assets like patents.
Learning Objectives
- Differentiate among various production costs and their methods of accounting.