The Concept Based on the Assumption That We Get Bargains

question 124

Multiple Choice

The concept based on the assumption that we get bargains on each unit we purchase until the last one is called

• A)total utility.
• B)consumer surplus.
• C)marginal utility.
• D)the law of diminishing marginal utility.

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Definitions:

Revenues

The total income generated from normal business operations and other activities, before any expenses are subtracted.

Cash Basis

An accounting method that recognizes revenues and expenses only when cash is exchanged.

GAAP

Generally Accepted Accounting Principles; the common set of accounting standards and procedures used in the U.S. to compile financial statements.

Revenue Recognition

A principle within accounting that determines the specific conditions under which revenue is recognized or accounted for.