Which of the following besi d$$scribes the difference between costs and expenses?

Multiple Choice

Expenses and Costs are initially recognized on the balance sheet as assets $($i$.$e$.$ inventory$)$ and then transferred to the incom

when the related goods or services are sold.

Costs are initially recognized on the balance sheet ds assets $($i$.$e$.$ inventory$)$ and then transferred to the income statement a

goods or services are sold, and expenses are recognized on the income statement for the period in which they are incurre

Only expenses are recognized on the balance sheet and income statement.

Expenses are initially recognized on the balance sheet as assets $($i$.$e$.$ inventory$)$ and then transferred to the income state

the related goods or services are sold, and costs are recognized on the income statement for the period in which they