Which of the Following Statements About the Value Creation Process

question 3

Multiple Choice

Which of the following statements about the value creation process is not correct?

• A)The value creation process reflects the wide range of possible points at which revenue could be recognized.
• B)Recognizing revenue early in the value creation process is more conservative than waiting until cash is received.
• C)Recognizing revenue early in the value creation process involves more uncertainties and lower reliability about cash flows.
• D)Permitting too much choice in accounting policies impairs comparability of financial statements.

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Definitions:

Primary Reinforcer

An innately reinforcing stimulus like food or drink, which does not require learning to become pleasurable or satisfying.

Negative Reinforcer

An aversive stimulus whose removal following a behavior increases the likelihood that the behavior will occur again in the future.

Positive Reinforcer

A prompt that, once introduced post-behavior, amplifies the chances of the behavior recurring.

Primary Reinforcer

A stimulus that satisfies a basic physiological need and is inherently rewarding without the need for learning.