Which of the Following Bases of Accounting Measurement Recognises Revenues

question 41

Multiple Choice

Which of the following bases of accounting measurement recognises revenues when resources are created as part of an organisation's operating activities?

• A) Cash
• B) Financing
• C) Investing
• D) Accrual

---

Definitions:

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit; essentially, it is the cost of producing one more unit of a good.

Output

The quantity of goods or services produced by a firm or economy.

Total Revenue Curve

A graphical representation that shows how total revenue changes as the quantity sold of a good or service changes, holding all other factors constant.

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of output.