Indian Economy Questions

If expenses are paid in cash then the assets will decrease.

Microeconomics deals with the 

* Allocation of resources of the economy as between production of different goods and services.

* Determination of prices of goods and services.

* Behavior of industrial decision makers.

Economists use the concept of marginal utility to measure happiness and pleasure and how that affects consumer decision making. They have also identified the law of diminishing marginal utility, which means that the first unit of consumption of a good or service has more utility than the next units of consumption.Hence, the marginal utility of the good diminishes as the amount of good consumed increases.

Revenue should be recognized when it is realized or when it is earned. When a service is performed something is earned and revenue should be recognized.