Which of the Following Statements Is Correct with Respect to Positive

question 27

Multiple Choice

Which of the following statements is correct with respect to positive accounting theory?

• A) Managers of firms with bonus based contracts prefer LIFO method of valuation basis, if permitted.
• B) Managers of firms with bonus based contracts prefer FIFO method of valuation basis.
• C) Managers prefer the FIFO method of valuation basis.
• D) Managers with debt covenants prefer LIFO method, if permitted.
• E) E: None of the given answers.

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Definitions:

Sales Force Automation

The use of software to streamline and enhance the efficiency of sales activities, including customer management and order tracking.

Enhanced Customer Service

An approach to improve the quality of service provided to customers, often involving additional features or personalized attention.

Salesforce Automation

The use of software to automate business tasks and processes in sales, such as customer management, order tracking, and inventory control, increasing efficiency and reducing manual effort.

Selling Function

Activities involved in the promotion and sale of goods or services to consumers or businesses.