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.

---

Definitions:

Memories

The faculty by which the mind stores and remembers information; also refers to the mental record of past experiences.

Reality Principle

A concept in psychoanalytic theory representing the ability of the mind to assess the external world and act upon it accordingly, as opposed to the pleasure principle.

Ego

In psychoanalytic theory, the part of the personality that deals with the reality of the world and tries to meet the needs of the id in socially acceptable ways.

Phallic

Relating to the third stage of psychosexual development in Freud's theory, focusing on pleasure from the genital area.