Which One of the Following Describes a Short Position

question 71

Multiple Choice

Which one of the following describes a short position?

• A)Purchasing a security on margin
• B)Selling a security that you originally purchased on margin
• C)Loaning a security to your broker to cover a margin call
• D)Having less equity than required in your margin account
• E)Selling a security that you do not own

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Definitions:

Overapplied

In cost accounting, refers to a situation where the allocated manufacturing overhead is more than the actual overhead incurred.

Underapplied

A situation in which the allocated or applied costs in accounting are less than the actual costs incurred.

Standard Costing System

An accounting method that applies predetermined costs to measure the cost of goods sold and performance.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making incremental improvements over time or breakthrough improvements all at once.