Which of the Following Are True

question 153

Multiple Choice

Which of the following are true?

• A) Economists use the criterion of economic efficiency to judge the merit of alternative outcomes.
• B) Undertaking an economic action will be efficient if it produces more benefits than costs for the individuals of the economy.
• C) Undertaking an economic action will be inefficient if it produces more costs than benefits to the individuals.
• D) All of the above are true.

Evaluate the use of compensating balances by banks and their impact on the effective cost of loans.

Understand the fundamental types and importance of nonverbal communication in social interaction.

Recognize practices and norms from past societal contexts and their evolution to modern standards.

Comprehend the role of norms, roles, statuses, and adherence to them in maintaining societal stability.

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.

Allowance Method

The allowance method is an accounting technique used to estimate and account for potential credit losses on accounts receivable, recognizing them as an expense before they occur.

Direct Write-off Method

An accounting technique for recognizing bad debts where specific uncollectible accounts are directly written off against income when deemed unrecoverable.

Aging of Receivables Method

An accounting technique used to estimate the amount of and provision for doubtful accounts by categorizing receivables according to the length of time they have been outstanding.