All of the Following Situations Contribute to the Need for a Company

question 47

Multiple Choice

All of the following situations contribute to the need for a company to recognize deferred revenues,except for

• A)partially executed contracts between buyers and sellers.
• B)the requirement by sellers for the prepayment of goods and services.
• C)mutually unexecuted contracts between buyers and sellers.
• D)the seller has collected a deposit but has an outstanding performance obligation under the contract.

Analyze the relationship between MRP and the hiring decisions of firms.

Grasp the principle of derived demand in labor and resource markets.

Recognize the role of diminishing marginal productivity in determining labor demand.

Identify how resource pricing affects the allocation of resources and ultimately influences firm’s costs and profits.

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Definitions:

APR

Annual Percentage Rate, a measure used to compare the annual cost of borrowing or the annual yield from an investment, including interest and fees.

Quoted Loan Rates

The interest rates that banks or other lenders advertise as available to borrowers.

Competitive

Characterized by the existence of competition; striving to gain or win something by defeating or establishing superiority over others.

Compounded Continuously

The mathematical limit that investment interest can grow to when it is compounded infinitesimally.