Alexa's First Job ​Alexa Has Just Earned Her Undergraduate Degree

question 109

Multiple Choice

Alexa's First Job ​Alexa has just earned her undergraduate degree in accounting and has successfully completed the CPA exam.She recently interviewed with a relatively small and new company and was offered a job.The offer sounded very promising;the job had opportunities to grow with the company and provided diverse challenges.Alexa accepted the job. Once Alexa started working,she realized that the owners and employees did not have a general understanding of accounting.She had to teach them the steps in an accounting cycle so they would be able to understand how she was going to create reports.When she talked about the statement of financial position,they had no idea what she was talking about.She was the qualified individual responsible for accounting.No one else working with her had much knowledge.They did not even know the different financial ratios that someone could use to understand the financial standing of a company.Alexa knows it will be a challenge to keep everyone on the same page when it comes to numbers and reports.
-Refer to Alexa's First Job.If the owners did not recognize the term "statement of financial position," Alexa could use which of the following more common terms?

• A) income statement
• B) balance sheet
• C) statement of cash flow
• D) statement of retained earnings
• E) statement of financial ratios

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Definitions:

Marginal Revenue

The additional income received from selling one more unit of a good or service; it's a critical concept in business and economics for understanding how to maximize profit.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, resulting in the cost per unit of production decreasing with increasing scale.

Average Total Cost Curve

Illustrates the average cost per unit of output, combining both fixed and variable costs, at different levels of production.

Profit-maximizing Monopolist

A monopolist who determines the quantity of output and price levels that result in the highest possible profits, given its unique market power.