Which of the Following Statements Is False

question 28

Multiple Choice

Which of the following statements is false?

• A) A short sale is a transaction in which you buy a stock that you do not own and then agree to sell that stock back in the future.
• B) The efficient portfolios are those portfolios offering the lowest possible level of volatility for a given level of expected return.
• C) A positive investment in a security can be referred to as a long position in the security.
• D) It is possible to invest a negative amount in a stock or security which is called a short position.

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Definitions:

Denominator Activity

A term used in cost accounting to refer to the level of activity used to allocate fixed costs to cost units.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead based on hours worked and the standard cost of variable overhead for those hours, indicating efficiency in controlling variable overhead costs.

Variable Manufacturing Overhead Cost

The portion of manufacturing costs that varies with the level of production output, including costs such as indirect materials and utilities.

Standard Hours Allowed

The amount of time that should be taken to complete a specific amount of work, according to predefined standards.