Question

1. Opportunity costs are not normally recorded in the routine accounting processes.

2. Historic costs are normally recorded in the routine accounting processes.
Are the above statements true or​ false?

A. True True
B. False True
C. False False
D. True False"

Answer 1

The statement that opportunity costs are not normally recorded in routine accounting processes is true because they are not tangible expenditures. The statement that historic costs are normally recorded is also true as they reflect the original cost of an economic item. Hence, the correct answer to the question is A. True True.

Step-by-step explanation:

Regarding the question about opportunity costs and historic costs in routine accounting processes, the statements can be evaluated as follows:

• Opportunity costs are not normally recorded in the routine accounting processes. This statement is true because opportunity costs represent the benefits an individual, investor, or business misses out on when choosing one alternative over another and as such, though very important in decision-making, they are not tangible expenditures that are recorded in financial statements.
• Historic costs are normally recorded in the routine accounting processes. This statement is also true. Historic costs pertain to the original monetary value of an economic item and are recorded on the balance sheet at their original cost. This is a conventional accounting practice focusing on the actual transaction value.

Therefore, the correct answer is A. True True.