Which Situation Below Might Indicate a Company Has a Low

question 99

Multiple Choice

Which situation below might indicate a company has a low quality of earnings?

• A) Revenue is recorded when recognized
• B) Repair costs are capitalized and then depreciated.
• C) The financial statements are prepared in accordance with generally accepted accounting principles.
• D) The same accounting principles are used each year.

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Definitions:

Non-pecuniary Job Characteristics

Aspects of a job that affect an employee's satisfaction aside from monetary compensation, such as working conditions, the work itself, and social interactions.

Sociological Factors

Social influences that affect individual behavior, choices, and societal trends, such as culture, ethnicity, and social networks.

Employment Discrimination

Unfair treatment or prejudice against employees or job applicants based on race, gender, age, religion, nationality, disability, or other protected characteristics.

Marginal Revenue Products

The additional revenue generated by employing one more unit of a resource.