Alexis Corporation Allows an Employee, Cynthia, to Use a Company

question 111

Multiple Choice

Alexis Corporation allows an employee, Cynthia, to use a company car for her vacation to San Diego.
I.Cynthia will not need to recognize the value of the use of the car since it was not cash.
II.A "cash equivalent approach" is used to measure the amount of income that must be recognized by Cynthia.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Total Revenue

The total income received by a company from its sales of goods or services before any expenses are subtracted.

Output Range

The spectrum of quantities of goods or services that a company can produce under certain conditions or within a specified period.

Elastic Demand

Refers to a market scenario where the quantity demanded of a product changes significantly when its price changes.

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of a product or service.