The Job Market for Accounting Professors Has Suddenly Strengthened

question 4

Multiple Choice

The job market for accounting professors has suddenly strengthened. Newly-graduated accounting Ph.Ds are being offered over $100,000 per year. Many current accounting professors are making significantly less and university salary budgets are tight. In addition, many accounting professors are reaching retirement age. As an HR professional with an understanding of compensation, which of the following situations will probably NOT occur?

• A) current accounting professors will start looking for new jobs
• B) retiring professors may not be replaced with as many new hires
• C) universities that don't offer market pay for new hires will not have many qualified applicants
• D) universities will begin offering more accounting classes on-line
• E) all of the above are likely outcomes

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Definitions:

Gross Profit Percentage

A financial metric that shows the portion of sales revenue that exceeds the cost of goods sold (COGS), expressed as a percentage of total sales revenue.

Net Profit Margin

A profitability ratio that measures the percentage of net income generated from total revenue, indicating the efficiency of a company in managing its operations and expenses.

Principal

The original amount of a debt or investment on which interest is calculated.

Long-Term Note

A debt security that matures in more than one year and can provide interest income over its term.