Which of the Following Are the Principles of Accounting

question 38

Multiple Choice

Which of the following are the principles of accounting?

• A)Unit of measure,cost-benefit,materiality,industry practices
• B)Unit of measure,separate entity,going concern,time period
• C)Cost,revenue recognition,matching,full disclosure
• D)Cost-benefit,materiality,industry practices

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Definitions:

Total Revenue

The total income generated by a firm from its sales activity, calculated as the unit price of a good times the quantity of goods sold.

Profit Increase

The rise in the difference between a company's revenue and its expenses, indicating improved financial performance.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the total quantity produced, indicating the cost per unit of output.

Maximum Profit

The highest possible financial gain that can be achieved by a business or investor, calculated by maximizing the difference between total revenue and total costs.