Which of the Following Represents the Best Example of Proprietor's

question 103

Multiple Choice

Which of the following represents the best example of proprietor's income?

• A)the paycheck that Freeda brings home from her job as a computer programer
• B)the interest that Hans earns from the savings account he has with USA Bank
• C)the revenue that Janet has left over after she pays all the expenses associated with running her software development business
• D)the check that Hunter receives each month for leasing his land to the natural gas company that is drilling on his land
• E)the check that Trisha gets each month from the Social Security Administration

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Definitions:

Fixed Manufacturing Overhead

The total of all costs related to manufacturing that do not change with the level of production, such as salaries of managers and rent of the factory.

Divisional Segment Margin

The profit margin for a specific division or segment of a company, calculated by subtracting direct and allocated expenses from segment revenues.

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding non-operating income and expenses.

Common Fixed Expense

A recurring cost that does not vary with the level of output or sales, such as rent or salaries.