Which of the Following Is a Definition of Revenue That

question 39

Multiple Choice

Which of the following is a definition of revenue that clearly represents an asset-liability approach?

• A)Revenue results from the sale of goods and rendering of services and is measured by the charge made to customers, clients, or tenants for goods and services furnished to them.
• B)Revenue represents gross increases in assets and gross decreases in liabilities measured in conformity with generally accepted accounting principles that result from those types of profit-directed activities.
• C)Revenue should be identified with the period during which the major economic activities necessary to the creation and disposition of goods and services have been accomplished.
• D)Revenues are the inflow or other enhancements of assets of an entity or settlement of its liabilities (or a combination of both) during a period from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.

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Definitions:

Cartels

Groups of independent market participants who collude to control prices and production in an industry, often illegally.

Price Leadership

A market strategy where one leading company sets the price of goods or services, and other companies in the sector follow suit.

Covert Collusion

An implicit, non-public agreement between firms to fix prices, limit production, or divide markets, without explicit communication.

Allocative Efficiency

A state of the economy where resources are allocated in a way that maximizes the overall benefit to society.