A Test Is Scheduled for Monday Morning,and You Went to a Party

question 33

Multiple Choice

A test is scheduled for Monday morning,and you went to a party on Sunday night.If you hadn't attended the party,you could have studied for the test or gone to a movie.Which of the following is true regarding your opportunity cost?

• A)The opportunity cost of going to the movie is studying for the test.
• B)The opportunity cost of going to the party is watching the movie.
• C)The opportunity cost of going to the party is both watching the movie and the study time.
• D)Because you could go to the party only that night,but could go to a movie any time,the opportunity cost of the party is the study time.
• E)From the above information,it's not possible to determine the opportunity cost of attending the party.

---

Definitions:

Book Value Per Share

Book Value Per Share is a financial measure that calculates the equity available to shareholders divided by the number of outstanding shares, indicating the value per share if the company were liquidated.

Liquidated

Refers to the process of converting assets into cash or paying off a debt.

Balance Sheet Amounts

The monetary values assigned to assets, liabilities, and equity in the balance sheet at a specific point in time, reflecting a company’s financial position.

Paid-in Capital

The amount of capital "paid in" by investors during common or preferred stock issuances, including the par value of the shares and any amount paid in excess.