Which of the Following Statements Is True

question 168

Multiple Choice

Which of the following statements is true?

• A)Assets and revenues are the same thing.
• B)If employees have not yet been paid for their work,the company has wages payable.
• C)Retained earnings equal cash that the company has earned and kept
• D)Revenue is another term for profit.
• E)Revenue minus expense equals retained earnings.

Identify the effects of supply shocks on the economy's output, inflation, and the Phillips curve.

Grasp the concept of the short-run and long-run Phillips curves and their implications for monetary policy.

Recognize the role of expectations in influencing the unemployment and inflation outcomes.

Examine the impact of external factors such as oil price changes and economic crises on inflation and unemployment.

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Definitions:

Accounting Rate of Return

A financial metric used to assess the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.

Cost of Capital

The return rate that a company must earn on its investment projects to maintain its market value and attract funds.

Net Present Value

A calculation used to determine the present value of a series of future cash flows minus the initial investment, often used in capital budgeting.

Return on Investment

A financial metric used to evaluate the efficiency of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.