Which of the Following Statements Is Correct

question 93

Multiple Choice

Which of the following statements is correct?

• A) Revenue is recognized at the time of shipment when goods are shipped FOB destination.
• B) Sales returns and allowances are reported as operating expenses on an income statement.
• C)Revenue is recorded when title and risks of ownership transfer to the buyer.
• D)Sales discounts are reported as cost of sales on an income statement.

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Definitions:

Marginal Revenue Product Curve

A curve showing the additional revenue generated by employing one more unit of a resource, assuming all other factors are constant.

Marginal Revenue Product

The increase in revenue resulting from the utilization of one more resource unit.

Wage Rate

The amount of compensation paid to employees per unit of time worked, often expressed per hour or year.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a particular input, assuming all other inputs remain constant.