Author name: Administrator

2054. Profits are

Residual payment
Pre-determined
Fixed contract
Always higher than wages
✅ The correct answer is A.
Profits are Residual payment. Residual payments are most often associated with the entertainment industry, since movies and music can generate revenues long after they are originally released.

2057. Shareholder wealth in a firm is represented by___________.

the number of people employed in the firm
the book value of the firm’s assets less the book value of its liabilities
the amount of salary paid to its employees
the market price per share of the firms common stock
✅ The correct answer is D.
Shareholder wealth in a firm is represented by the market price per share of the firms common stock. Shareholder wealth is defined as the present value of the expected future returns to the owners (that is, shareholders) of the firm.

2058. Call options situation in which strike price is greater than current price of stock is classified as

out-of-the-portfolio
in-the-portfolio
in-the-money
out-of-the-money
✅ The correct answer is D.
Call options situation in which strike price is greater than current price of stock is classified as in-the-portfolio. Call options are agreements that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other instrument at a specified price within a specific time period.

2023. The short run

Is less than one year
Requires that at least one input is fixed
Requires that all inputs are fixed
Is just long enough to permit entry and exit
✅ The correct answer is B.
The short run Requires that at least one input is fixed. The short run is a concept that states that, within a certain period in the future, at least one input is fixed while others are variable.

2027. Which of the following is not a common approach to phishing?

Send an official‐looking e‐mail asking for confidential information
Ask people to fill out and return a fake letter using postal mail
Ask people to click a link in an e‐mail to open a submission form on a web page
All of the above are uncommon approaches to phishing
✅ The correct answer is B.
Asking people to fill out and return a fake letter using postal mail is not a common approach to phishing.

2029. A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as

accounting period costing system
process costing system
job costing system
none of above
✅ The correct answer is B.
A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as process costing system. Process costing is a type of operation costing which is used to ascertain the cost of a product at each process or stage of manufacture.

2030. An acquisition cost of raw material is to be used in manufacturing, and becoming a component of cost object is classified as

direct material costs
indirect material costs
direct labour costs
indirect labour costs
✅ The correct answer is A.
An acquisition cost of raw material is to be used in manufacturing, and becoming a component of cost object is classified as direct material costs. Direct materials cost the cost of direct materials which can be easily identified with the unit of production. For example, the cost of glass is a direct materials cost in light bulb manufacturing.

2036. A group of individual indirect cost item is defined as

direct pool
cost pool
indirect pool
item pool
✅ The correct answer is B.
A group of individual indirect cost item is defined as cost pool. Cost pools is an accounting term that refers to groups of accounts serving to express the cost of goods and service allocatable within a business or manufacturing organization.
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