An Example of an Accounting Method That Could Affect Operating

question 146

Multiple Choice

An example of an accounting method that could affect operating income is

• A) inventory valuation method.
• B) revenue recognition method.
• C) depreciation method.
• D) all of these could affect operating income.

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Definitions:

Normal Good

A good for which demand increases when income increases and falls when income decreases, all other factors being equal.

Income Increased

A rise in the amount of money earned from work, investments, or other sources.

Consumption of Strawberries

Refers to the amount of strawberries that are eaten or used by consumers within a specific period.

Commodity X

A placeholder term for any generic good or service in economic discussions or models.