Which of the Following Terms Refers to the Amount of Money

question 3

Multiple Choice

Which of the following terms refers to the amount of money that owners would receive if they sold all of a company's assets and paid all of its liabilities?

• A) Asset
• B) Owners' equity
• C) Inventory
• D) Profit
• E) Credit

---

Definitions:

Quantity Standard

Pre-determined measure set for the amount of input that should be used in producing a unit of output.

Standard Cost System

A cost accounting system that uses estimated costs for inventories and cost of goods sold rather than historical costs, facilitating budgeting and variance analysis.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor directly used to create the product.

Standard Cost Variances

The differences between the actual costs incurred and the standard costs, indicating underperformance or overperformance.