Which of the Following Statements Is True of Discretionary Efforts

question 47

Multiple Choice

Which of the following statements is true of discretionary efforts?

• A) It is the difference between the amount of effort a person has exerted and the minimum amount of effort that he or she needs to exert to keep from being fired.
• B) It is the difference between the maximum amount of effort a person can exert and the minimum amount of effort that he or she needs to exert to keep from being fired.
• C) It is the difference between the maximum amount of effort a person can exert and the amount of effort a person has exerted while on-the-job.
• D) It is the difference between the amount of effort a person has exerted and the maximum amount of effort that a person can exert while on-the-job.

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Definitions:

Accounts Payable

Amounts owed by a business to its suppliers shown as a liability on a company’s balance sheet and typically due within a short period of time, often 30 to 90 days.

Equipment

Tangible assets used in the operations of a business, not intended for sale, and depreciated over time.

Drawing Account

An account that tracks the amount withdrawn by the owners from the business for personal use.

Credit Balance

The amount appearing on the credit side of a ledger, indicating the total credits exceed the total debits in an account.