Considering the Value of a Financial Instrument, the More Likely

question 97

Multiple Choice

Considering the value of a financial instrument, the more likely it is the payment will be made:

• A) the more valuable the financial instrument.
• B) the less valuable is the instrument because risk is lower.
• C) the less valuable is the financial instrument because it is highly liquid.
• D) the greater the uncertainty; therefore the less valuable is the financial instrument.

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Definitions:

Direct Labor Hours

The total hours worked by employees who are directly involved in producing goods or providing services.

Machine Hours

A measure of the amount of time a machine is operated, used in allocating manufacturing costs to units of product.

Finished Goods

Items that are finished being made but have not been purchased by consumers yet.

Cost of Goods Sold

The total cost of manufacturing or purchasing the goods that a company sold during a specific period.