A Utility Function Is

question 22

Multiple Choice

A utility function is:

• A) additive, by definition.
• B) a descriptive statement that relates satisfaction or well-being to the consumption of goods and services.
• C) multiplicative, by definition.
• D) can be neither additive nor multiplicative.

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Definitions:

Fully Depreciated

A condition where a fixed asset has reached the end of its useful life and its book value is reduced to salvage value or zero.

No Gain

A financial situation where a transaction does not result in any profit to the party involved.

Revaluation Model

An accounting method that allows assets to be carried at a revalued amount, reflecting current values rather than historical cost, with adjustments made to the assets' carrying amount on the balance sheet.

Reversals of Revaluation

An accounting process that negates a previously recorded increase or decrease in the value of an asset to reflect its current market value.