Which of the Following Is a Correct Statement

question 181

Multiple Choice

Which of the following is a correct statement?

• A) Producer surplus is an external benefit.
• B) Consumer surplus is an external benefit.
• C) A government subsidy paid to a producer is an external benefit.
• D) None of the above statements are correct.

Understand the concept and importance of predictive value in accounting information.

Identify and understand the constraints in accounting, such as cost and materiality.

Know different measurement principles used in accounting, specifically the historical cost and fair value.

Understand the circumstances under which accounting principles can be changed and the justification required for such changes.