Revenue Should Be Recognised When

question 7

Multiple Choice

Revenue should be recognised when:

• A) (i) and (ii) only
• B) (i) and (iii) only
• C) (ii) and (iii) only
• D) (i), (ii) and (iii)

Differentiate between investment in capital and consumer goods.

Analyze the factors affecting investment levels and capacity utilization.

Recognize the components and fluctuation patterns of gross private investment.

Understand the concepts related to the stock market and corporate ownership.

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Definitions:

Perfect Competitor

A theoretical market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller can influence market price.

Marginal Product

The increase in output resulting from a one-unit increase in the amount of a single input, holding all other inputs constant.

Wage Rate

The fixed amount of compensation or payment made to an employee by an employer in return for work performed, typically expressed on an hourly, daily, or piecework basis.

Variable Inputs

Resources used in production that vary with the level of output, such as raw materials and labor hours.