Which of the Following Is Not One of the Three

question 47

Multiple Choice

Which of the following is not one of the three criteria for recognition of a liability?

• A) The obligation involves a probable future sacrifice of resources at a specified or determinable date.
• B) The firm is required to make a cash payment for the goods or services.
• C) The firm has little or no discretion to avoid the transfer.
• D) The transaction or event giving rise to the liability has already occurred.

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Definitions:

Short Run

In economics, a period during which at least one of a firm's inputs is fixed, limiting its capacity to adjust to changes in demand.

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to change.

Marginal Revenue

The additional income gained from selling one more unit of a product or service.

Monopolist's Demand Curve

The demand curve faced by a monopolist, which is the same as the market demand curve, indicating that the monopolist can set the price only by choosing the quantity to produce.