Which of the Following Statements Is True of Indirect Methods

question 48

Multiple Choice

Which of the following statements is true of indirect methods of proof?

• A) The cash method, which has limited application, is feasible only when the number of units and price can be determined easily.
• B) When there is an accumulation of assets without a corresponding source of funds the unit and volume method is most commonly used.
• C) The bank deposit method is used when the subject (individual or business) consumes income rather than accumulates assets.
• D) Successful use of the net worth method requires a complete reconstruction of the subject's financial history, including all assets, liabilities, expenditures, and sources of funds.

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Definitions:

Share Points

Analysis that uses percentage points of market share as the common basis of comparison to allocate marketing resources effectively for different product lines within the same firm.

Market Share

The segment of a market dominated by a specific company or product.

Sales Revenue

The total amount of money generated from selling goods or services before any expenses are subtracted.

Market Segments

Identifies groups of consumers within a broader market who share similar characteristics, needs, or purchasing behaviors, enabling tailored marketing strategies.