Use the Following to Answer Questions

question 73

Multiple Choice

Use the following to answer questions:
Scenario: Accounting and Economic Profit
Rather than put the $100,000 that his grandmother left him in a mutual fund that earns 5% each year, Tommy Wang quit his job, which paid $60,000 per year, and started Wang's Wicker Furniture Store. He rented a showroom for $20,000 for the year, purchased $60,000 in wicker furniture, and incurred costs of $40,000 for sales help and advertising. Instead of using the capital for his own business, he could rent it to a rival firm and earn $5,000 a year. In his first year, his revenue was $150,000.
-(Scenario: Accounting and Economic Profit) Look at the scenario Accounting and Economic Profit. The accounting profit of Wang's Wicker Furniture Store is:

• A) $200,000.
• B) $60,000.
• C) $30,000.
• D) $0.

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Definitions:

Personal-Injury

Legal term referring to injury to the body, mind, or emotions, as opposed to an injury to property.

Litigation Process

The procedure of taking legal action in court to enforce or defend a right or settle a dispute.

Legitimate Grounds

Valid or justifiable reasons for taking a certain action or stance.

Appeal

The process by which a party to a case seeks a formal change to an official decision, usually through a higher court's review of the lower court's decision.