Which of the Following Statements Is True Regarding ARS 3

question 13

Multiple Choice

Which of the following statements is true regarding ARS 3?

• A)One of its principles states that revenue is earned by the entire process of operations of the firm rather than at the point of sale.
• B)All of its principles were derived from the postulates of ARS 1.
• C)The asset valuation measures prescribed are additive.
• D)One of the main criticisms aimed at ARS 3 relates to its advocating the exit-value approach to asset valuation.

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Definitions:

Strategic Management

involves the formulation and implementation of the major goals and initiatives taken by a company's top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes.

Social Responsibility Objectives

Goals that aim to improve community well-being and protect the environment as part of an organization's operations.

Competitive Advantage

is the attribute that allows an organization to outperform its competitors, resulting from unique resources, capabilities, or strategies.

Rival Behaviour

Actions or strategies adopted by companies in competition with one another to gain an advantage or market share.