Zhen Left a Job as an Accountant Making $80,000 a Year

question 100

Multiple Choice

Zhen left a job as an accountant making $80,000 a year to open his own business. Zhen now owns his own accounting firm and employs three book keepers to help manage his accounts. His total revenue this year was $525,000. Because he is well known for his estate planning and expertise, he is also paid $16,000 per year by a local news station to answer tax questions on their weekly Ask the Accountant segment. His explicit costs for payroll, insurance, taxes, mortgage, and utilities are $390,000. Zhen's accounting profit is

• A) $71,000.
• B) $541,000.
• C) $151,000.
• D) $135,000.

---

Definitions:

Intelligence Test

A standardized assessment designed to measure a broad range of cognitive abilities and provide an estimate of an individual's intellectual potential.

IQ Tests

Standardized assessments designed to measure human intelligence and cognitive abilities in relation to an age group.

Academic Intelligence

Refers to the intellectual capabilities measured through traditional educational testing and academic achievements.

IQ Scores

Numerical measurements of intelligence, usually defined through standardized testing, designed to assess human intelligence.