Which Statement Is Not Correct

question 37

Multiple Choice

Which statement is not correct?

• A)If an enterprise has a pension plan with a defined benefit liability and another plan with a defined benefit asset,the two amounts would be shown net in the balance sheet.
• B)If an enterprise has a pension plan with a defined benefit liability and another plan with a defined benefit asset,the two amounts would be shown separately in the balance sheet.
• C)Two plans that both have net liability positions can be combined.
• D)Two plans that both have net asset positions can be combined.

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Definitions:

Short Run

A period in which at least one input in the production process is fixed and cannot be varied to influence output.

Economic Profit

The difference between a firm's total revenue and all costs, including both explicit and implicit costs.

Average Fixed Cost

The fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced, which decreases as output increases.

Total Product

The total quantity of output produced by a firm during a given time period with a given amount of inputs.