Which of the Following Statements Is True About Revenue

question 44

Multiple Choice

Which of the following statements is true about revenue?

• A)Revenue is the total amount received for selling a good or service.
• B)Revenue is calculated by dividing the price per unit by the number of units sold.
• C)The terms "revenue" and "profit" can be used interchangeably.
• D)A firm's revenue will increase as its costs increase.

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Definitions:

Alteration

An unauthorized change to an instrument that modifies the obligation of a party to the instrument.

Promissory Note

A written promise to pay a specified sum of money to a certain individual or entity at a specified time or on demand.

Fictitious-Payee Rule

A principle in commercial law that a bank is not liable for fraudulent endorsement payments if the drawer intended the payee to be fictitious.

Refund

The process of returning funds to a purchaser in response to a product return, cancellation, or dissatisfaction with services provided.