Which of the Following Statements Is Not Correct

question 224

Multiple Choice

Which of the following statements is not correct?

• A) It is possible that additional education will increase a worker's wage without increasing the worker's productivity.
• B) If discriminating wage differentials persist in competitive markets, it is primarily because either consumers are willing to pay to maintain the discrimination or because government mandates it.
• C) An efficiency wage corresponds to a lower wage that a nondiscriminating employer pays to a worker because a discriminating employer won't hire her.
• D) In competitive markets, workers are paid a wage equal to the value of their marginal product.

Understand the conditions under which revenue recognition occurs, and the differences between accrual and cash basis accounting.

Recognize the importance and application of the matching principle in revenue and expense recognition.

Identify the critical events that determine the timing of net income recognition and the distinction between operating and non-operating income.

Distinguish between book value and carrying amount in the context of accounting records and financial statements.

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Definitions:

Forward Rates

Interest rates or financial transaction rates agreed upon now, to be executed at a future date.

Yield Curve

A graphical representation that shows the relationship between interest rates and the maturity dates of debt securities.

Treasury Bond

A long-term, government-issued security with a fixed interest rate and maturity of more than 10 years, considered to be one of the safest investments.

STRIPS

Separate Trading of Registered Interest and Principal of Securities; a form of a bond that separates its interest payments from its principal repayment obligation, enabling investors to hold and trade them separately.