The System of Accounting Where Revenues Are Recorded When They

question 145

True/False

The system of accounting where revenues are recorded when they are earned and expenses are recorded when they are incurred is called the cash basis of accounting.

Understand the relationship between brand personality and brand equity.

Explain the concept of lifestyle and its importance to marketing.

Distinguish between psychographics and demographics and their roles in marketing.

Understand how the VALS typology segments consumers based on values and lifestyles.

---

Definitions:

Income

Proceeds obtained, often periodically, from labor or investment returns.

Utility

A measure of satisfaction or happiness that consumers derive from the consumption of goods and services.

Perfect Substitutes

Two goods that could be used in place of each other with no loss of utility to the consumer.

Perfect Complements

Goods that are always used together in fixed proportions, where the consumption of one good requires the consumption of a specific quantity of another good.