Which of the Following Transactions Decreases the Quality of Income

question 124

Multiple Choice

Which of the following transactions decreases the quality of income ratio?

• A)The accrual of interest expense.
• B)Collecting cash on an account receivable.
• C)Selling inventory on account for a profit.
• D)Making a payment of principal on a loan.

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Definitions:

Just-Noticeable Difference

The smallest change in stimulus intensity that can be detected, underlining the threshold at which a change is perceptible.

Detectably Different

The threshold at which a change in a variable or condition is perceptible or measurable from its previous state.

Fechner's Law

A principle describing the logarithmic relationship between stimulus magnitude and the resultant sensory experience's intensity.

Specificity Theory

The proposal that different sensory qualities are signaled by different quality-specific neurons. This theory is correct in only a few cases (e.g., pain).