Which of the Following Statements Are Correct

question 5

Multiple Choice

Which of the following statements are correct?
I. The "highest-valued alternative given up to get something" is the opportunity cost.
II. Wealthy economies don't experience opportunity costs.
III. Scarcity creates opportunity costs.

• A) I only
• B) I and II
• C) I and III
• D) I, II, and III

Know how to construct a buffer in a negative message for smoother communication.

Understand how to provide detailed reasons for bad news in a manner that is clear yet considerate.

Recognize the importance of maintaining a positive relationship with the recipient despite delivering bad news.

Know the guidelines for making a clear statement of bad news when organizing a negative message using the indirect method.

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Definitions:

Accounts Payable

A liability account on a company’s balance sheet representing money owed to creditors for goods and services purchased on credit.

Special Journals

Accounting journals designed for recording specific types of transactions in detail, such as sales, purchases, cash receipts, and disbursements, for efficient processing.

Cash Receipts Journal

A dedicated accounting ledger for documenting all cash inflows.

Purchases Journal

A record that specifically tracks all purchase transactions made by a business, often used in a manual accounting system.