After You Graduate, You Have Decided to Accept a Position

question 447

Multiple Choice

After you graduate, you have decided to accept a position working at the Bureau of Labor Statistics for $45,000.00 a year. The two other offers you received were working for Wal -Mart for
$38,000 and working for Ernst and Young consulting for $42,000. Of these two offers, you would have preferred the job at Ernst and Young. What is the opportunity cost of accepting the position at the Bureau of Labor Statistics?

• A) the $42,000 you would have been paid working for Ernst and Young and the $38,000 you would have been paid working for Wal-Mart
• B) the $42,000 you would have been paid working for Ernst and Young
• C) the $45,000 you are paid for working at the Bureau of Labor Statistics
• D) the $38,000 you would have been paid working for Wal -Mart

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and so close to their maturity that they present insignificant risk of changes in value due to changes in interest rates.

Net Change

Net Change refers to the difference in a financial instrument's closing price between two consecutive trading sessions.

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Income Recognition

The accounting principle that revenue should only be recognized after the business has fulfilled its obligations and the payment is certain.