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When a Direct Cause-And-Effect Relationship Cannot Be Established Between Revenues

Question 27

Multiple Choice

When a direct cause-and-effect relationship cannot be established between revenues and costs,the costs are


A) not expensed and remain as assets on the balance sheet.
B) expensed among the accounting periods that benefit from the costs.
C) expensed immediately in their entirety.
D) expensed equally each year.

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